Analyst Samik Chatterjee from J.P. Morgan maintained a Buy rating on Teradyne (TER – Research Report) and decreased the price target to $120.00 from $145.00.
Samik Chatterjee has given his Buy rating due to a combination of factors that reflect both challenges and opportunities for Teradyne. Despite the recent downward revision of the 2025 forecasts, Chatterjee maintains an optimistic outlook for the company, emphasizing the potential for significant growth driven by industry trends such as Verticalization, Electrification, and AI. These trends are expected to transform the market, with Teradyne well-positioned to capitalize on these changes, particularly in the VIP ASIC and AI GPU markets.
Furthermore, Chatterjee highlights Teradyne’s strategic positioning in the robotics and automation sectors, which are poised for growth due to reshoring manufacturing needs and labor replacement. The company’s recent acquisition of Quantifi Photonics also enhances its prospects in the Silicon Photonics space. Despite the current market challenges, the stock’s valuation appears attractive, trading at a relatively low multiple, which presents limited downside risk and potential for appreciation as the company leverages its strengths in key growth areas.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $140.00 price target.
TER’s price has also changed moderately for the past six months – from $131.510 to $87.070, which is a -33.79% drop .
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