Morgan Stanley Forecasts Strong Price Appreciation for Teradyne (NASDAQ:TER) Stock

Teradyne (NASDAQ:TER) had its price target increased by equities research analysts at Morgan Stanley from $387.00 to $397.00 in a research note issued on Thursday,Benzinga reports. The firm presently has an “equal weight” rating on the stock. Morgan Stanley’s price objective suggests a potential upside of 9.69% from the stock’s previous close.

Several other equities research analysts have also commented on the company. The Goldman Sachs Group restated a “buy” rating and set a $465.00 price target on shares of Teradyne in a research note on Tuesday. Zacks Research raised Teradyne from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 12th. Weiss Ratings downgraded shares of Teradyne from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Monday, July 20th. Bank of America raised their price target on shares of Teradyne from $365.00 to $525.00 and gave the company a “buy” rating in a report on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. raised shares of Teradyne from a “neutral” rating to an “overweight” rating and set a $400.00 price target on the stock in a research report on Thursday, April 30th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $396.80.

Teradyne Price Performance

TER stock traded up $42.51 on Thursday, hitting $361.92. 3,491,489 shares of the company were exchanged, compared to its average volume of 3,862,757. The stock has a market capitalization of $56.66 billion, a price-to-earnings ratio of 49.69, a price-to-earnings-growth ratio of 0.93 and a beta of 1.74. The business’s fifty day moving average is $382.18 and its two-hundred day moving average is $335.81. Teradyne has a twelve month low of $102.42 and a twelve month high of $487.91.

Teradyne (NASDAQ:TER) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $2.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.38. The company had revenue of $1.33 billion during the quarter, compared to analysts’ expectations of $1.22 billion. Teradyne had a net margin of 25.77% and a return on equity of 41.96%. The business’s quarterly revenue was up 103.9% compared to the same quarter last year. During the same period in the previous year, the company earned $0.57 EPS. Teradyne has set its Q3 2026 guidance at 1.850-2.150 EPS. Equities research analysts expect that Teradyne will post 7.2 earnings per share for the current year.

Insider Buying and Selling

In related news, VP Ryan Driscoll sold 680 shares of the business’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $377.60, for a total transaction of $256,768.00. Following the transaction, the vice president directly owned 7,665 shares of the company’s stock, valued at approximately $2,894,304. The trade was a 8.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Shannon John Poulin sold 1,008 shares of the company’s stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $345.37, for a total value of $348,132.96. Following the completion of the transaction, the insider owned 15,066 shares of the company’s stock, valued at approximately $5,203,344.42. This represents a 6.27% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 14,941 shares of company stock valued at $5,444,112. Corporate insiders own 0.19% of the company’s stock.

Institutional Investors Weigh In On Teradyne

A number of large investors have recently added to or reduced their stakes in TER. State Street Corp lifted its holdings in Teradyne by 0.9% in the 4th quarter. State Street Corp now owns 7,078,635 shares of the company’s stock worth $1,370,141,000 after buying an additional 60,986 shares in the last quarter. Ameriprise Financial Inc. grew its stake in shares of Teradyne by 3.0% during the second quarter. Ameriprise Financial Inc. now owns 4,920,100 shares of the company’s stock valued at $442,413,000 after acquiring an additional 143,058 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of Teradyne by 18.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,203,546 shares of the company’s stock worth $813,640,000 after acquiring an additional 659,273 shares during the last quarter. Invesco Ltd. increased its position in shares of Teradyne by 3.5% during the third quarter. Invesco Ltd. now owns 2,959,330 shares of the company’s stock worth $407,322,000 after acquiring an additional 99,864 shares during the last quarter. Finally, Morgan Stanley lifted its stake in shares of Teradyne by 1.9% in the fourth quarter. Morgan Stanley now owns 2,442,014 shares of the company’s stock worth $472,677,000 after acquiring an additional 45,089 shares in the last quarter. 99.77% of the stock is owned by institutional investors and hedge funds.

Teradyne News Summary

Here are the key news stories impacting Teradyne this week:

• Positive Sentiment: Strong Q2 results: Teradyne reported $1.33 billion in revenue, up 103.9% year over year and ahead of the $1.22 billion consensus estimate. Non-GAAP EPS was $2.47, exceeding expectations of approximately $2.09; Semiconductor Test generated $1.12 billion of revenue. Teradyne Reports Second Quarter 2026 Results
• Positive Sentiment: Above-consensus Q3 guidance: Management forecast revenue of $1.2 billion to $1.3 billion, or approximately $1.25 billion at the midpoint, versus analyst expectations near $1.0 billion. Adjusted EPS guidance of $1.85 to $2.15 also exceeded the roughly $1.43 consensus estimate. Teradyne forecasts upbeat revenue on strong chip equipment demand, shares jump
• Positive Sentiment: AI-driven demand supports the outlook: Higher testing requirements for advanced chips used in AI data centers and vehicles, continued wafer-fabrication investment and expanding memory opportunities are fueling expectations for additional growth. Teradyne Beats Q2 Expectations As AI Chip Demand Lifts Q3 Outlook
• Positive Sentiment: Analyst support: Cantor Fitzgerald reaffirmed its “overweight” rating and set a $550 price target, indicating continued confidence in Teradyne’s earnings momentum.
• Neutral Sentiment: Investment-fund commentary also highlighted Teradyne’s exposure to semiconductor recovery, rising chip complexity and strong demand for custom silicon, reinforcing the prevailing bullish thesis but adding no new company guidance.
• Negative Sentiment: Investors should monitor margin variability, competition and valuation risk. With a reported P/E ratio near 50, further gains may depend on Teradyne converting sustained AI-related demand into continued earnings growth.

About Teradyne

Teradyne, Inc is a global supplier of automatic test equipment and related services principally used to test semiconductors, wireless products and complex electronic systems. Founded in 1960, the company is headquartered in North Reading, Massachusetts, and has a long history of developing capital equipment and software that help semiconductor manufacturers, electronics OEMs and contract manufacturers validate product performance and reliability during design and production.

The company’s product portfolio centers on automatic test equipment (ATE) and system-level test solutions that address chip- and board-level validation, burn-in and reliability screening.