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What is the target price for Teradyne stock?

Published in Stock Price Analysis 3 mins read

Analyst estimates for Teradyne (TER) stock present a range of target prices, with a median target price of $135.00 and an average target price of $139.00. These figures reflect collective projections from analysts regarding the stock's potential value, set against its current trading price of $125.95.

Stock price targets are forward-looking estimates by financial analysts, predicting a security's future price over a specific period, typically 12 to 18 months. They are derived from various valuation methodologies, including discounted cash flow (DCF) models, comparable company analysis, and precedent transactions. Due to different methodologies and assumptions, a range of target prices often emerges for a single stock.

Teradyne (TER) Analyst Price Targets

The table below summarizes the various price targets and the current price for Teradyne (TER), offering a comprehensive view of analyst expectations.

Metric Price
High Target $180.00
Median Target $135.00
Low Target $111.00
Average Target $139.00
Current Price $125.95
  • High Target: Represents the most optimistic projection from analysts, suggesting significant upside potential.
  • Median Target: The middle value of all analyst estimates, providing a widely cited benchmark that is less affected by extreme outliers.
  • Low Target: The most conservative estimate, indicating potential downside or limited growth.
  • Average Target: The arithmetic mean of all analyst estimates, offering another perspective on the collective expectation.
  • Current Price: The most recent trading price, serving as the baseline for comparison with the targets.

Understanding Stock Price Targets

Stock price targets are valuable tools for investors seeking to gauge potential returns or risks, but they should be considered as one part of a broader investment analysis.

  • Guidance for Investors: They provide a professional opinion on where a stock's price might be headed, helping investors decide on entry or exit points.
  • Reflection of Market Sentiment: These targets often reflect the prevailing sentiment among market professionals regarding a company's prospects, industry trends, and overall economic conditions.
  • Dynamic Nature: Price targets are not static; they are regularly updated by analysts in response to new financial results, company news, industry developments, or changes in macroeconomic factors.
  • Not Guarantees: It's crucial to remember that target prices are projections and not guarantees of future performance. Actual stock prices can deviate significantly due to unforeseen market events, company-specific issues, or broader economic shifts.

When evaluating Teradyne or any stock, consider these price targets alongside other fundamental and technical analysis. This includes examining the company's financial health, competitive landscape, management quality, and industry growth drivers. For a comprehensive breakdown of analyst estimates and ratings, investors can refer to detailed market data available from reputable financial news sources.