Morgan Stanley has revised its outlook on Teradyne (TER, Financial), lowering the price target for the company's shares to $69 from a previously set $81, while maintaining an Underweight rating. This adjustment comes after Teradyne updated its projections for 2025 and 2026 during its analyst day on March 11.
Despite Teradyne's optimistic future guidance, Morgan Stanley remains skeptical, expressing concerns that the company’s forecasts might be overly ambitious. The investment firm has recalibrated its own revenue projections for Teradyne, estimating figures that are 7% below the company's expectations for 2025 and 18% below for 2026. Furthermore, these forecasts are also lower by 6% and 12% compared to broader market predictions for the same period.
The upcoming earnings release scheduled for April 28, along with the subsequent conference call on April 29, is seen as a critical juncture. Morgan Stanley suggests this may be an opportune moment for Teradyne to revisit and possibly retract its current guidance for 2025 and 2026, thereby aligning more closely with market realities and adjusting the expectations set by analysts and investors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Teradyne Inc (TER, Financial) is $113.29 with a high estimate of $155.00 and a low estimate of $69.00. The average target implies an upside of 52.97% from the current price of $74.06. More detailed estimate data can be found on the Teradyne Inc (TER) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, Teradyne Inc's (TER, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Teradyne Inc (TER, Financial) in one year is $115.14, suggesting a upside of 55.47% from the current price of $74.06. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Teradyne Inc (TER) Summary page.
