Teradyne shares rose after a Piper Jaffray analyst upgraded the chip testing company's stock to "Buy" from "Neutral," saying he believes new products will give Teradyne a lift in 2009.
Analyst Auguste P. Richard said Monday that sales of digital random access memory (DRAM) and flash memory testing products, along with a new product that may be a testing system for hard disk drives, will lead to stronger results in 2009. He raised his price target to $16 per share from $14, and lifted his profit and revenue estimates.
A spokesman for Teradyne declined to comment on the new product Richard described.
Richard trimmed his 2008 estimates because Teradyne Inc.'s business has weakened. But he expects a recovery starting in the fourth quarter.
He now sees the North Reading, Mass., company earning 95 cents per share in 2009 on $1.43 billion in revenue. On average, analysts expect 98 cents per share on sales of $1.41 billion.
The stock gained 55 cents, or 5.1 percent, to $11.26 in afternoon trading.
(This version CORRECTS the company's headquarters to Massachusetts from Japan.)
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