Teradyne Poised for Growth Despite Recent Underperformance, Says Analyst
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Teradyne is a semiconductor test equipment and industrial automation company that has underperformed the market recently but has strong long-term growth prospects.
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The semiconductor test equipment market is cyclical but expected to grow at 6-8% through 2030, which will benefit Teradyne.
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Teradyne's industrial automation segment, especially collaborative robots, has huge growth potential with expected CAGRs of 20-30%.
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Normalized earnings projections point to Teradyne being undervalued currently with a fair value estimate of $104 per share.
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Main risks are the cyclicality of the semiconductor industry and uncertainty about the profitability timeline for the industrial automation segment.