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Investing.com - Needham has raised its price target on Teledyne (NYSE:TDY) to $615.00 from $585.00 while maintaining a Buy rating following the company’s third-quarter earnings report. The $25.5 billion market cap company currently trades at a P/E ratio of 30.29, with analysts maintaining a strong Buy consensus rating of 1.55.
Teledyne reported third-quarter sales growth of 6.7% year-over-year, exceeding Street expectations of 5.7% growth. The company’s earnings per share also came in "solidly above consensus," according to Needham. InvestingPro data shows the company has maintained profitability over the last twelve months with a healthy 42.75% gross profit margin.
Despite the strong results, Teledyne shares pulled back on Wednesday, which Needham attributed to investors expecting a stronger fourth-quarter guidance relative to consensus expectations. The firm believes the company has built conservatism into its outlook due to the government shutdown.
Needham highlighted several positive factors in Teledyne’s business, including recovery in short-cycle operations and growth in legacy DALSA/e2v businesses. The aerospace and defense segment remains a "bright spot" with solid organic growth in defense, particularly in the unmanned business, and benefits from recent acquisitions.
The company has maintained a book-to-bill ratio above 1.0 for eight consecutive quarters, indicating continued strong demand for Teledyne’s products and services. The company maintains an overall GOOD financial health score according to InvestingPro’s comprehensive assessment.
In other recent news, Teledyne Technologies reported its earnings for the third quarter of 2025, surpassing analyst expectations with an earnings per share of $5.57. This figure exceeded the forecast of $5.47. Additionally, the company’s revenue reached $1.54 billion, slightly above the projected $1.53 billion. Despite these positive results, the company’s stock experienced a decline in pre-market trading. TD Cowen has maintained its Buy rating on Teledyne Technologies, with a price target of $600. This decision follows the company’s quarterly earnings report, where adjusted earnings per share exceeded analyst expectations by 10 cents and were 11 cents above TD Cowen’s forecast. These developments highlight the company’s strong financial performance and continued confidence from analysts.
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