CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We cut our 12-month target to $70 from $87 on a P/E of 23x our 2024 EPS estimate, near peers, but below TER’s five-year average (24x) on a soft macro. We maintain our 2023 EPS estimate of $2.84, but sharply cut our 2024 estimate to $3.03 from $4.14. TER posted Q3 EPS of $0.80 (vs. $1.15 in Q3 2022), $0.07 above consensus, driven by higher-than-expected sales in its Robotics group. Within Semi Test, automotive provided strength, which we expect to continue in 2024 on increasing semi content in vehicles and structural growth in EVs. However, overall testing was broadly weaker, with areas like mobility and wireless driven lower by a weak smartphone market. We expect this headwind to fade in 2024, but are hesitant to project a significant bounce in smartphone-related testing. In Robotics, despite encouraging progress with its new UR20 product (300 units delivered in Q3), we remain skeptical that TER can produce its stated ambitions of Robotics accounting for 5%-15% of profit, with a mid-20% revenue CAGR by 2026.