Needham & Company Starts Teradyne (TER) at Buy

Needham & Company initiates coverage on Teradyne (NYSE: TER) with a Buy rating and a price target of $23.00.

Analyst Y. Edwin Mok commented, "We are initiating coverage of Teradyne, Inc. with a Buy rating and a PT of $23. We believe the negative cyclical decline of the Automated Test Equipment (ATE) industry could turn positive in the next few years on growing investments in NAND and demand out of China. Teradyne is particularly well positioned for these industry drivers, enabling it to further gain share and continue to grow its ATE business. While the rapidly growing Industrial Automation segment is a small, we see good potential for it to become a material growth driver in 2-3 years. The stock has been trading within a tight range since 2014 on weakness in the ATE and the Wireless space, but we see growth returning driving the stock to break out over the next 2 years and Teradyne eventually delivering LT targets of rev/EPS at $2.2B/$2.00 by 2020."

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 $19.17 yesterday.

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