Shares of Teradyne Inc (NASDAQ:TER) climbed in early trading on Monday.
Growth of the semiconductor test total addressable market is likely to accelerate further in 2025, according to JPMorgan.
Analyst Samik Chatterjee upgraded the rating for Teradyne from Neutral to Overweight, while raising the price target from $145 to $158.
The Teradyne Thesis: The semiconductor test TAM that is relevant to the company is likely to reach $6.4 billion in 2025 and accelerate further to $7.6 billion in 2026, Chatterjee said in the upgrade note.
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Teradyne is likely to gain a higher share in the verification IP ASIC market and increase its share of the high bandwidth memory market, which would drive an acceleration in the company's revenue growth to low-20% in 2025 and high-20% in 2026, the analyst stated.
"Our updated outlook for the TAM leads us to forecast Teradyne revenues tracking to $4.4 bn in 2026, towards the high-end of its earlier outlined target for a range of $3.9-$4.6 bn of revenue, and we now forecast EPS of $6.75 in 2026 towards the higher-end of the outlined range of $5.50-$7.50, he further wrote.
TER Price Action: Shares of Teradyne were up 4.2% to $128.51 at the time of publication Monday.
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