KeyBanc has revised its rating on Teradyne (TER, Financial) from Overweight to Sector Weight, citing recent shifts in trade policy and their unpredictable effects on market demand. The downgrade reflects concerns about the company's exposure to inconsistent demand in sectors such as mobile phones, automotive, and consumer products.
The financial institution indicated that it is now channeling its focus towards semiconductor capital equipment companies that have clearer growth catalysts and better market visibility. This strategic pivot arises from their diminished confidence in forecasting near-term results for Teradyne compared to other companies in their coverage.
Furthermore, KeyBanc expressed a more favorable outlook on firms involved in technology upgrade cycles or those that have streamlined channel inventories, such as companies dealing with memory products. This implies a potential shift in their investment preference towards businesses with more predictable growth trajectories in the current volatile market environment.
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 59.20% from the current price of $71.16. 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 $115.03, suggesting a upside of 61.65% from the current price of $71.16. 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.