Teradyne, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Shane Brett CFA from Morgan Stanley maintained a Sell rating on the stock and has a $74.00 price target.
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Shane Brett CFA’s rating is based on several factors that suggest caution regarding Teradyne’s future performance. Despite Teradyne’s potential to expand its role in NVIDIA’s supply chain, particularly with RTX testing, the anticipated revenue contribution from this partnership remains marginal. The company’s current involvement with NVIDIA in areas like Mellanox and switches is not expected to significantly broaden in the near to mid-term.
Additionally, Shane Brett CFA highlights a challenging earnings outlook for Teradyne. The firm’s revenue and EPS forecasts for 2026 are notably below street expectations, and there is an anticipation of a downward adjustment in street estimates following the June quarter earnings. The company’s guidance for the September quarter is also expected to align more closely with Morgan Stanley’s conservative estimates, further justifying the Sell rating.