Cantor Fitzgerald Reiterates Overweight Rating on Teradyne (TER)

Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating and $105.00 price target on Teradyne (NASDAQ: TER).

The analyst commented, "So far little in the way of surprise for TER's release - skinny beat (2Q rev/EPS $652M/$0.57 vs. cons $650M/$0.54), guidance miss (3Q rev/ EPS mdpt $740M/$0.78 vs. cons $761M/$0.89 and our preview for modest miss), and positive commentary around visibility and demand in AI-releted Semi Test markets (Compute, Networking, and Memory). As such, this is potentially setting up for a buy-the-last-cut scenario given TER's underperformance coupled with the healthy growth backdrop we envision into CY26, supporting EPS tracking closer to $5.00 vs. the bear case of $4.00. The big question from here will be around mgmt.'s commentary on tomorrow morning's call. If the team can highlight the robust opportunity ahead with TER's leverage to both the cyclical recovery and secular megatrends (including a likely focused discussion on rising compute exposure at Teradyne), the stock should continue to work higher. Admittedly, this has been an area where mgmt. has struggled in the past, but we believe the setup this Q may be more conducive to positive investor takeaways (i.e., there are no longer 37 different forecasted bogeys for mgmt. to comment on). So, as for now, we remain cautiously optimistic and continue to view risk/reward skewed to the upside. We will update our model and thoughts post-call."

For an analyst ratings summary and ratings history on Teradyne click here. For more ratings news on Teradyne click here.

Shares of Teradyne closed at $90.55 yesterday.

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