Teradyne, Inc. (NYSE:TER) shares, which is trading up significantly, are fairly priced. S&P Capital IQ analyst Zino lifted his 12-month price tag from $27 to $29 on the stock on a near peer PE of 16.2X his 2018 operating EPS estimate. This implied that there is limited potentials for upside rewards and that the stock is correctly priced. However, he retained his Hold rating on the company’s shares.
“We positively view automotive device test demand and see robust growth in Universal Robots, albeit from low levels. We expect TER to aggressively repurchase shares and potentially look to be acquisitive,” the analyst told about Teradyne stock in his research report.
The analyst noted that the company reported earnings of 32 cents a share for the fourth quarter that topped the 22 cents a share estimated by Capital IQ consensus. Sales dropped 7 percent sequentially. However, orders were better than estimated as customers pulled in Semiconductor Test orders.
Following this, the brokerage boosted its EPS estimate from $1.55 to $1.62 for the year 2017. However, the analyst retained his EPS view of $1.79 for the year 2018.
At last check, Teradyne shares are trading up 4.56 percent.