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Bank of America and JPMorgan issued the steepest price target reductions. Others, including KeyBanc, Stifel, Susquehanna, and UBS, see potential for long-term upside despite the near-term weakness.
Teradyne (TER) shares edged 0.5% lower in morning trade on Wednesday after a slew of price target cuts from Wall Street following the company’s analyst day.
The stock fell to a one-year intraday low of $82.98 on Tuesday before closing down 17% for the day.
On its analyst day, Teradyne reaffirmed its first-quarter (Q1) outlook but warned that its second-quarter (Q2) revenue could be "flat to down 10%" compared to the previous quarter.
For the fiscal year 2025, the company expects revenue growth of 5% to 10%, implying a range of $2.96 billion to $3.10 billion – below the $3.23 billion consensus estimate, according to Koyfin.
Bank of America (BofA) and JPMorgan issued the steepest price target reductions, according to TheFly.
BofA cut its target to $85 from $100 while maintaining an ‘Underperform’ rating, citing skepticism over the company’s long-term growth prospects in AI and memory.
JPMorgan lowered its target to $120 from $145 but kept an ‘Overweight’ rating, arguing that while management’s forecasting ability is under scrutiny, downside risk is now limited given the stock’s decline.
JPMorgan pointed to the company’s recent revision to guidance, noting that the adjustment soon after issuing its initial 2025 outlook raises questions about management’s ability to forecast demand.
KeyBanc and Stifel highlighted macroeconomic factors that could delay recovery, while Susquehanna cited geopolitical risks weighing on earnings expectations.
KeyBanc lowered its price target to $140 from $150, maintaining an ‘Overweight’ rating on the shares. Meanwhile, Stifel lowered its price target on Teradyne’s shares to $110, down from $125, keeping a ‘Hold’ rating.
UBS and KeyBanc argued that the long-term growth thesis remains intact, while Stifel acknowledged that restructuring efforts could help mitigate earnings pressure if growth lags.
Despite Wall Street’s bearish stance, retail sentiment on Stocktwits around Teradyne moved upward within ‘bullish’ territory, accompanied by a surge in chatter to ‘extremely high’ levels.
According to platform data, Teradyne’s ticker saw a 3,100% jump in message volumes over the past 24 hours.
One user speculated that Teradyne could climb back to $100, implying a 12% upside from current levels.
Others warned of continued selling pressure, expecting a further downside.
Teradyne shares are down 31% year-to-date and have lost more than 17% over the past 12 months.
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Read also: Teradyne Stock Crashes To One-Year Low As Q2 Guidance Underwhelms Wall Street – Retail Remains Bullish
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