Analysts slashed price targets on Teradyne Inc (NASDAQ:TER), including some rating downgrades post issuing lackluster Q1 outlook after Q4 results.
- Deutsche Bank analyst Sidney Ho downgraded Teradyne to Hold from Buy with a price target of $120, down from $170 (8.4% upside).
- The company provided "weak" guidance for the first half of 2022 as revenue from its crucial mobility customer will likely decline more than 50% this year.
- The analyst adds that while the delayed transition to 3nm was already well known, he's still surprised by the magnitude of the decline in tester demand.
- Teradyne's long-term growth is there, but the stock will be range-bound in the short term, notes Ho.
- Stifel analyst Brian Chin downgraded Teradyne to Hold from Buy with a price target of $115, down from $160 (4% upside).
- Chin tells investors that he is "not throwing in the towel" and continues to back Teradyne's dual growth strategy in test and industrial automation.
- However, he acknowledges that the path to achieving the estimates that he based his initial valuation upon will be steeper.
- He suspects that in the current environment, the "appetite to discount 2023-24 scenarios has lessened."
- He is lowering his 2022 estimates, and although he remains optimistic on the growth opportunities Teradyne has out to 2023, Chin said that "tactically speaking this year we view Teradyne as a better 2H than 1H stock."
- Rosenblatt analyst Kevin Garrigan kept a Buy and reduced the price target to $165 from $180 (suggesting 49% upside).
- Susquehanna analyst Mehdi Hosseini lowered the firm's price target on Teradyne to $150 from $165 (35.5% upside) and maintained a Positive.
- The analyst said that after its disappointing guidance, the risk/reward profile on the hares has improved.
- He said the company would likely be back on track starting in 2H22 to progress toward annualized earning power of $8.
- Baird analyst Richard Eastman lowered the price target on Teradyne to $142 from $160 and reiterated an Outperform.
- The analyst views the reset in the shares as offering a fresh opportunity to play the ramp in semiconductor complexity/Test demand coming in 2023/24, along with expected +HSD% growth in units.
- Morgan Stanley analyst Joseph Moore maintained Teradyne with an Overweight and lowered the price target to $132 from $161 (19% upside).
- Piper Sandler analyst Weston Twigg maintained Teradyne with an Overweight and lowered the price target to $163 from $173 (47% upside).
- Price Action: TER shares traded lower by 0.37% at $110.83 on the last check Friday.
