Teradyne’s Revised Guidance and Trade Uncertainties Prompt Sell Rating by Analyst Shane Brett

Analyst Shane Brett CFA from Morgan Stanley maintained a Sell rating on Teradyne (TER – Research Report) and keeping the price target at $112.00.

Shane Brett CFA has given his Sell rating due to a combination of factors impacting Teradyne’s financial outlook. The company has revised its June quarter guidance downward, indicating a flat to 10% decline instead of the previously expected 5-10% growth. This revision is attributed to uncertainties around tariffs and trade restrictions, which have led customers to delay or defer orders, particularly affecting the System-on-Chip (SoC) test segment in the auto, industrial, and compute sectors.
Furthermore, Teradyne has adjusted its 2025 revenue growth expectations from 15% to a more modest 5-10% due to these uncertainties and the need to mitigate risks in the second half of the year. The company’s clarification on its 2026 guidance also suggests they are trending towards the lower end of their revenue and earnings projections. These factors, combined with the unexpected guidance revision that led to a significant stock sell-off, underpin Shane Brett’s cautious stance and Sell rating on Teradyne.

In another report released yesterday, Bank of America Securities also reiterated a Sell rating on the stock with a $85.00 price target.