Teradyne (TER) PT Lowered to $69 at Morgan Stanley

Morgan Stanley analyst Joseph Moore lowered the price target on Teradyne (NASDAQ: TER) to $69.00 (from $81.00) while maintaining a Underweight rating.

The analyst comments "TP to $69, remain UW. We had revised our estimates following Teradyne’s Investor Day and our meeting with Advantest (covered by Tetsuya Wadaki), but we revise down our estimates once again to reflect a slower recovery path for key end- markets (auto industrial, mobile) with our 2025/2026 revenue forecasts coming down 2%/3% and EPS forecasts down 7%/11%. Our 2025 forecast comes down from $2.89bn/59.3%/$3.08 to $2.82bn/59.3%/$2.87 and our 2026 forecast comes down from $3.28bn/59.6%/$4.26 to $3.19bn/59.6%/$3.81. We lower our target multiple from 19x to 18x, in-line with front end SPE peers ex-KLA, as we believe the stock has become a “show-me” story. On our new FY26 EPS of $3.81, this brings down our price target from $81 to $69. Our view is that Teradyne is end-market dependent (Mobile, auto/industrial, NAND) and going forward the stock is unlikely to rally on narrative around opportunities but will require earnings or clear signs of end-market recoveries."

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