Last Updated: 07 Nov 2024
Executive Summary
Teradyne Inc. (TER) is a leading provider of automatic test equipment (ATE) for the semiconductor and electronics industries. The company has a strong financial position with a market capitalization of $17.75 billion and an EBITDA of $640.7 million. The stock is currently trading at $109, below its 52-week high of $163.05. Analysts have a positive outlook on the stock, with an average target price of $132.95.
Company Overview
Teradyne Inc. is an American company that designs and manufactures ATE. The company's products are used to test the functionality and performance of semiconductors and other electronic components. Teradyne has a global presence with operations in North America, Europe, and Asia. The company's customers include major semiconductor manufacturers and electronics companies.
Fundamental Analysis
Teradyne's financial performance has been strong in recent years. The company's revenue has grown by an average of 10% per year over the past five years. The company's profitability has also improved, with its operating margin increasing from 15% in 2017 to 21% in 2023. Teradyne's balance sheet is also strong, with the company having a low level of debt and a high level of cash.
Technical Analysis
The technical analysis of Teradyne's stock price shows that the stock is currently in a downtrend. The stock has been trading below its 50-day and 200-day moving averages for the past several months. The stock's relative strength index (RSI) is also below 50, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Teradyne's stock is mixed. The stock is currently trading below its key moving averages and its RSI is oversold. This suggests that the stock could continue to decline in the short term. However, the company's strong fundamentals could provide support for the stock price.
Long Term Outlook
The long-term outlook for Teradyne's stock is positive. The company is a leader in the ATE market and it has a strong financial position. The company's products are essential for the semiconductor and electronics industries, which are expected to continue to grow in the future.
Analyst Recommendations
Analysts have a positive outlook on Teradyne's stock. The average target price for the stock is $132.95, which represents a potential upside of 21% from the current price. Three analysts have a strong buy rating on the stock, eight have a buy rating, seven have a hold rating, and one has a sell rating.
