What Happened?
Shares of semiconductor testing company Teradyne (NASDAQ:TER) jumped 7.2% in the afternoon session after Northland analysts upgraded the stock's rating from Market Perform (Hold) to Outperform (Buy) and raised the price target from $117 to $154. The new price target implied a potential 10% upside from where shares traded before the upgrade was announced.
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What The Market Is Telling Us
Teradyne’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock gained 5.2% on the news that JPMorgan upgraded the stock's rating from Neutral to Overweight (Buy) and raised the price target from $145 to $158. The new price target implies a potential 20% upside from where shares traded before the upgrade was announced.
Teradyne is up 11% since the beginning of the year, but at $140.53 per share, it is still trading 13.8% below its 52-week high of $163 from July 2024. Investors who bought $1,000 worth of Teradyne’s shares 5 years ago would now be looking at an investment worth $2,105.
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