Teradyne Shares Jump As Analysts See Huge Upside Post Q3 Beat

Analysts bumped ratings and price targets on Teradyne Inc TER following the Q3 beat.

Cowen analyst Krish Sankar upgraded Teradyne to Outperform from Market Perform with a PT of $150, up from $135, implying a 30.3% upside. The stock has underperformed peers year-to-date as Apple Inc AAPL "digests some test capacity," but the market has now largely discounted this, Sankar notes. 

With continued growth in core system-on-chip test and industrial automation markets, coupled with Teradyne's "impressive" margin profile, the stock is attractive, says the analyst.

UBS analyst Timothy Arcuri double upgraded to Buy from Sell with a PT of $140, up from $100, implying a 21.6% upside. 

This year, new disclosure around its customer exposure leads the analyst to conclude that Apple, Teradyne's biggest customer, is "now de-risked." 

At the same time, tailwinds in the core system-on-chip test market "should remain firm" in 2022 and 2023, Arcuri tells investors in a research note. The analyst is also bullish on Teradyne's share gain opportunity.

Craig-Hallum analyst Christian Schwab upgraded to Buy from Hold with a PT of $138, up from $120, implying a 19.8% upside. 

The analyst notes Teradyne reported better-than-expected results and guidance. 

Schwab adds that management outlined how they expect strength to continue with the company's core semi-test business continuing to execute well.

Piper Sandler analyst Weston Twigg raised the PT to $141 from $137, implying a 22.4% upside, and maintained an Overweight following Q3 earnings beat and offering "strong" Q4 guidance as test and automation tailwinds remain strong." 

Twigg said that supply chain constraints are limiting robotics shipments, a moderate near-term headwind. The analyst noted that he continues to view Teradyne as a "compelling" test and automation play exiting the pandemic.

Price Action: TER shares traded higher by 11.3% at $136.98 on the last check Thursday.