Teradyne Inc

TER: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$866.00	Jdlg	Yndsghc

Teradyne Is a Chip Testing Behemoth Worthy of a Wide Moat; Initiating Coverage at $172 FVE

William Kerwin

Dec 13, 2021

We are initiating coverage of Teradyne with a $172 fair value estimate, wide economic moat rating, and stable moat trend rating. We forecast 11% compound annual sales growth through 2025 and non-GAAP operating margin expansion from 30% in 2020 to 35% in 2025. The shares appear fairly valued to us, but we think a modest pullback could create room for investors looking for an agnostic long-term play on the semiconductor market.

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