Citi Raises Its Price Target on Teradyne to $20 (TER)

Citi is out with its report today on Teradyne TER, raising its PT on TER to $20. In a note to clients, Citi writes, "With a big beat from TER, this is now the first major semicap to emerge from a significant order correction and show it can still generate significant cash; we remain buyers of the stock on this big beat even given the ~10% jump in the aftermarket. Rolling the better CQ1:11 guide through our model, we are increasing 2011 EPS again from $1.81 to $2.08 (Street ~$1.40 entering this print). Maintain Buy (1H) but bump target to $20 which still doesn't seem heroic given ~$2/share EPS and ~$6/share net cash exiting 2011. This remains our favorite semicap." Shares of TER are trading pre-market at $16.09. up 9.98% from Wednesday's close.