Teradyne (TER) PT Raised to $306 at Morgan Stanley

Morgan Stanley analyst Shane Brett raised the price target on Teradyne (NASDAQ: TER) to $306.00 (from $288.00) while maintaining a Equalweight rating.

The analyst comments "How do our estimates change? We revise up our FY26 estimates from $4.2bn/$6.31 to $4.5bn/$6.79 and our FY27 estimates from $5.2bn/$8.74 to $5.3bn/$9.00 as our FY26/27 networking growth forecasts come up from 75%/30% to 104%/23% as we now forecast networking revenue to double in 2026. We raise our target multiple from 33x to 34x, increasing our premium to front-end from 15% to 20%, which brings up our PT to $306. Our bull case, which incorporates stronger NVDA share gains, comes up from $389 to $411 (37x FY27 $11.11). Why not OW? We have missed this inflection as we didn’t believe in the company’s core drivers enough and we were wrong. It is now clear that the structural story is strengthening, with test intensity breaking above historical ranges. That said, the stock is now trading at the highest multiple in our SPE coverage, based on estimates that are already well above Street. While we like the risk/reward in TER and favor the name within our EWs, we see more attractive opportunities elsewhere in our coverage universe (OW AMAT & MKSI)."

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