Goldman Sachs expects Nvidia ’beat and raise,’ lifts price target to $240
Investing.com - Northland raised its price target on Teradyne (NASDAQ:TER) to $186 from $161 on Thursday, maintaining an Outperform rating on the semiconductor test equipment maker. The stock is currently trading near its 52-week high of $177.24, with InvestingPro data showing a remarkable 19.93% return just last week.
The price target increase follows Teradyne’s quarterly results, which Northland described as "strong," alongside robust guidance driven by increasing demand from artificial intelligence applications. The company has been profitable over the last twelve months with diluted EPS of $2.88, and analysts forecast EPS of $3.15 for fiscal year 2025.
The firm noted that while AI-related demand is surging for Teradyne, other segments including mobile, automotive, industrial, and robotics remain "lack luster" in performance.
Northland indicated that Teradyne shares are now closely "tied to AI" trends in the market, prompting the firm to raise its calendar year 2026 estimates slightly above consensus.
The price target adjustment reflects Northland’s decision to increase its target multiple from 32x to 35x on calendar year 2026 estimates, reflecting higher growth expectations for Teradyne’s AI-related business.
In other recent news, Teradyne reported impressive third-quarter earnings for 2025, with both earnings per share (EPS) and revenue exceeding market expectations. The company achieved an EPS of $0.85, surpassing the forecasted $0.79, and reported revenue of $769 million, outperforming the anticipated $744 million. Following these results, Teradyne raised its guidance for the December quarter, projecting revenue of $960 million and EPS of $1.33 at the mid-point, significantly above consensus expectations of $814 million and $1.02, respectively.
In addition to its earnings report, Teradyne received an upgrade from BofA Securities, which raised the stock rating from Underperform to Buy, citing increased demand for AI testing. BofA also increased its price target to $205.00 from $145.00, projecting a multi-year acceleration for the company. Cantor Fitzgerald reiterated its Overweight rating with a price target of $180.00, describing the quarter as a "blowout" for the semiconductor test equipment manufacturer. These developments indicate a strong outlook for Teradyne, driven by robust earnings and positive analyst sentiment.
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