Street Calls of the Week
Investing.com - Stifel raised its price target on Teledyne (NYSE:TDY) to $645.00 from $626.00 on Thursday, while maintaining a Buy rating on the stock. According to InvestingPro data, the stock is currently trading near its Fair Value, with analyst targets ranging from $585 to $640.
The industrial technology company reported third-quarter revenues and earnings that were approximately in line with expectations, though the stock fell 5% as organic growth and margins showed a slight decline compared to stronger second-quarter results. Despite this, InvestingPro data shows Teledyne maintains robust financials with a 42.75% gross margin and healthy revenue growth of 6.44% over the last twelve months.
Stifel noted that a potential U.S. government shutdown could become a new headwind for Teledyne if it extends beyond previous shutdowns and into November.
Despite these concerns, Teledyne’s defense business continues to perform well, with drone operations (both air and undersea) up 10% in the third quarter and increased exposure to European defense markets.
The company’s backlog continues to grow, with a book-to-bill ratio of 1.09x, marking Teledyne’s eighth consecutive quarter with a ratio above 1.0.
In other recent news, Teledyne Technologies reported impressive third-quarter results, with earnings per share (EPS) of $5.57, surpassing the forecasted $5.47. The company’s revenue also exceeded expectations, reaching $1.54 billion against a projected $1.53 billion. Following these results, Needham raised its price target for Teledyne to $615, maintaining a Buy rating, citing strong sales growth of 6.7% year-over-year. TD Cowen also reiterated its Buy rating, maintaining a $600 price target after Teledyne’s EPS exceeded analyst expectations by 10 cents. Both firms highlighted the company’s ability to outperform consensus estimates. Despite these positive developments, Teledyne’s stock saw a decline in pre-market trading. These recent developments reflect Teledyne’s robust financial performance and continued confidence from analysts.
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