Benzinga | Oct 28, 2021 02:54PM EDT

Teradyne Shares Jump As Analysts See Huge Upside Post Q3 Beat

Analysts bumped ratings and price targets on Teradyne Inc (NASDAQ: 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 (NASDAQ: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.