Teradyne upgraded to Neutral from Underweight at JPMorgan

JPMorgan upgraded Teradyne to Neutral from Underweight with a price target of $100, up from $90. The analyst sees “increasingly de-risked expectations” for 2024, helped by the updated outlook from the company for flat revenues and lower earnings year-over-year outlined on the Q4 earnings call. While the reduction of testing intensity from Apple as a primary customer and the absorption of the underutilization of mobility system on a chip test equipment following years of sluggish demand are headwinds challenging the recovery for Teradyne in the first half of 2024, the anticipated recovery in the underlying smartphone market in the second half and increase in complexity with node migrations for key customers like Qualcomm as well as increasing demand for artificial smartphones provide opportunity for upside, the analyst tells investors in a research note.