Teradyne shares jump on broker upgrade
Sept 15 (Reuters) - Shares of Teradyne Inc (TER.N), a supplier of semiconductor test equipment, rose more than 11 percent Tuesday after a brokerage upgraded the stock to "outperform" citing contracts from Qualcomm Inc (QCOM.O). In winning the Qualcomm deal, Teradyne delivers a "gut-punch" to competitor Verigy Ltd VRGY.O and walks away with a 15-20 unit UltraFLEX order ($30-$40 million) from Qualcomm near term, brokerage Oppenheimer said in a note.
Visibility for volume orders in the fourth quarter to support Broadcom Corp's (BRCM.O) ramp is another positive catalyst for the company, analyst Gary Hsueh said.
Hsueh revised his third-quarter estimates for Teradyne saying the company can revisit prior peak earnings in 2010 in a mid-cycle spending environment.
The analyst also raised his price target on the stock to $13 from $8.
Teradyne shares were up 11 percent at $9.19 in morning trade on Nasdaq.
(Reporting by Mansi Dutta in Bangalore; Editing by Gopakumar Warrier)
((mansi.dutta@thomsonreuters.com; within U.S. +1 646 223 8780;outside U.S. +91 80 4135 5800; Reuters Messaging: mansi.dutta.thomsonreuters.com@reuters.net)) Keywords: TERADYNE/
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