Teradyne shares gain for a third straight session on Friday, Stifel upgrades stock to “Buy” on growth prospects in semi test and industrial robotics

Stifel raised its rating on Teradyne Inc (TER) to “Buy” from “Hold” and also revised up its 12-month price target on the stock from $85 to $115, as the firm sees better growth prospects in the semi test and industrial robotics.

Shares of Teradyne Inc closed higher for a third consecutive trading session on NASDAQ on Friday. It has also been the sharpest single-session gain since July 27th. The stock went up 4.39% ($3.62) to $86.10, after touching an intraday high at $86.83, or a price level not seen since September 2nd ($88.52).

Shares of Teradyne Inc have risen 26.26% so far this year, following another 117.30% gain in 2019.

“In semis, we now expect a shorter digestion phase (smartphone picking back up) and are increasing our CY21 estimates accordingly. More broadly we believe upward pressure on test intensity (more test rev$/wafer) is unlikely to abate and we see Teradyne capitalizing on this given its strong/improving customer position,” Stifel analyst Brian Chin wrote in an investor note.

According to Chin, Teradyne has an underappreciated opportunity in industrial robotics, and more precisely in autonomous vehicles.

Analyst stock price forecast and recommendation

According to CNN Money, the 17 analysts, offering 12-month forecasts regarding Teradyne Inc’s stock price, have a median target of $90.00, with a high estimate of $115.00 and a low estimate of $60.00. The median estimate represents a 4.53% upside compared to the closing price of $86.10 on October 9th.

The same media also reported that at least 7 out of 17 surveyed investment analysts had rated Teradyne Inc’s stock as “Buy”, while other 7 – as “Hold”. On the other hand, 2 analysts had recommended selling the stock.

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