Teradyne price target raised to $140 from $117 at KeyBanc

KeyBanc raised the firm’s price target on Teradyne to $140 from $117 and keeps an Overweight rating on the shares. The firm’s price target increase is based on its expectation that the 3nm transition should drive increasing sales of Teradyne’s test equipment while it benefits from continued strength in auto/industrial chip demand and activity in China. Additionally, when the cycle inflects, KeyBanc expects Teradyne should see solid earnings growth propelled by volume-driven incremental margins. Long-term, the firm thinks the industry’s increasing focus on advanced packaging should benefit Teradyne.