Teradyne double upgraded to Buy at BofA on multi-year acceleration

As previously reported, BofA analyst Vivek Arya double upgraded Teradyne (TER) to Buy from Underperform with a price target of $205, up from $145. Teradyne’s Q3 earnings call addressed the firm’s prior concerns about the lack of sales and EPS revisions, says the analyst, who believes Teradyne is in front of a multi-year acceleration driven by a faster pace of new manufacturing process introduction at TSMC (TSM), faster adoption and greater testing complexity of AI compute and memory chips, a smartphone recovery with Apple’s (AAPL) adoption of 2nm products, and the robotics segment getting stronger as part of Amazon (AMZN) warehouse upgrades, adds the analyst, who raised the firm’s calendar year 2025, 2026 and 2027 pro-forma EPS estimates by 14%, 24% and 35%, respectively.