Goldman Sachs initiates Teradyne stock with Sell rating on weak growth outlook

Published 10/07/2025, 11:20
Goldman Sachs initiates Teradyne stock with Sell rating on weak growth outlook

Investing.com - Goldman Sachs initiated coverage on Teradyne (NASDAQ:TER) with a Sell rating and set a price target of $80.00, significantly below the current trading price of $92.78. According to InvestingPro data, analyst targets for TER range from $68 to $133, reflecting mixed sentiment on Wall Street.

The investment bank cited Teradyne’s lack of exposure to Merchant GPU Test as a key factor that would cause the company to underperform compared to other semiconductor capital equipment stocks in its coverage universe.

Goldman Sachs also pointed to ongoing cyclical weakness in Industrial markets as a concern, particularly as it relates to Teradyne’s Robotics business segment.

The firm expressed uncertainty about growth prospects in Teradyne’s Mobile segment, which has experienced several quarters of weakness, and indicated it needs more clarity on this business line’s trajectory.

Goldman Sachs believes market expectations for Teradyne remain too optimistic, specifically stating that "Street estimates remain too high for 2026/27" in its analysis of the company’s longer-term outlook.

In other recent news, Teradyne Inc . reported its first-quarter 2025 earnings, revealing stronger-than-expected financial results. The company posted an earnings per share (EPS) of $0.75, surpassing the forecast of $0.62. Revenue reached $686 million, exceeding the anticipated $681.38 million. Despite the positive earnings, Teradyne’s stock saw a premarket decline of 2.38%, trading at $75 per share. Stifel analysts maintained their Hold rating on Teradyne shares, with a consistent price target of $110.00, following these results. Additionally, Teradyne shareholders approved an amended incentive plan during the Annual Meeting, which includes updates to the company’s Equity and Cash Compensation Incentive Plan. In corporate governance developments, Teradyne appointed two new independent directors to its Board as part of a multi-year refreshment process. Drew Henry and Dr. Necip Sayiner, both veterans in the semiconductor industry, bring extensive experience to Teradyne’s board.

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