Bank of America Securities analyst Vivek Arya has reiterated their bearish stance on TER stock, giving a Sell rating yesterday.
Vivek Arya has given his Sell rating due to a combination of factors affecting Teradyne’s current market position. The company is experiencing ongoing macroeconomic challenges, with significant inventory levels that need to be addressed. This situation is compounded by limited visibility into the second half of the year, as Teradyne has not reaffirmed its growth outlook, leading to uncertainty in demand across its key markets, including mobile, automotive, and industrial sectors.
Additionally, while Teradyne is poised to benefit from long-term trends in AI compute and memory demand, the near-term risks overshadow these opportunities. The company has not updated its Total Addressable Market (TAM) estimates, which adds to the uncertainty. Furthermore, Teradyne’s valuation remains at a premium compared to its peers, despite limited model leverage, which could pose a risk to investors. These factors collectively contribute to Arya’s decision to maintain a Sell rating on the stock.
According to TipRanks, Arya is a 5-star analyst with an average return of 9.0% and a 45.86% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Advanced Micro Devices.
In another report released yesterday, Morgan Stanley also maintained a Sell rating on the stock with a $68.00 price target.