On Friday, Northland has adjusted its price target for Teradyne (NASDAQ:TER), a provider of automated test equipment, to $126.00, a decrease from the previous target of $136.00. The firm has chosen to maintain its Market Perform rating on the stock.
The revision follows Teradyne's latest guidance, which indicated a mixed performance across its business segments. While the Semitest division showed positive results, this was counterbalanced by weaker outcomes in the Industrial Automation (IA) and System Test divisions.
Northland's revised estimates now align with the consensus, reflecting increased revenue projections for Semitest but reduced expectations for IA and System Test.
The analyst from Northland commented on the factors that could influence Teradyne's performance in the upcoming fiscal year 2025, noting that the company's future could hinge on the recovery of the mobile market and the demand for testing equipment from vertically integrated product companies.
Despite the lowered price target, Northland's stance on Teradyne remains at Market Perform, indicating a neutral outlook on the stock's potential. The firm's new price target of $126.00 reflects the latest adjustments and expectations set by the analyst.
In other recent news, Teradyne recently reported a solid earnings beat with a slight revenue miss. The combined second and third quarter revenues and earnings per share (EPS) were expected to be $1.44 billion and $1.62 respectively, aligning with consensus estimates.
Cantor Fitzgerald and Goldman Sachs subsequently adjusted their price targets for Teradyne, with Cantor Fitzgerald cutting its target to $160 from $180 and Goldman Sachs reducing its target to $151 from $161. Both firms maintained their respective ratings on the stock.
Teradyne's management confirmed its bullish stance for 2025, with all growth vectors remaining strong despite higher than expected operational expenses. The company's efforts in areas such as AI, Networking, High Bandwidth (NASDAQ:BAND) Memory (HBM), and Very Important Person (VIP) technology, have been noted.
In the robotics sector, despite current macroeconomic pressures, management's strategic refocusing efforts are showing promise. Teradyne reported a Q2 2024 revenue of $730 million and non-GAAP earnings per share (EPS) of $0.86, with the Robotics business showing a 26% year-over-year increase in revenue, reaching $90 million.
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