ALL,
LB's new target $78.
======================
Headline: Teradyne Inc: Upbeat New York Meeting; Estimates Raised
Author: Edward C. White, Jr., CFA 1(212)526-4744
Company: TER
Industry: ELECTS
Ticker : TER Rank(Prev): 1-Buy Rank(Curr): 1-Buy
Price : $58 1/8 @12:35 p.m. 52wk Range: $59-16 Price Target: $78
Today's Date : 10/15/97
Fiscal Year : DEC
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EPS 1996 1997 1998 1999
QTR. Actual Prev. Curr. Prev. Curr. Prev. Curr.
1st: 0.63A 0.20A 0.20A 0.50E 0.58E - -E - -E
2nd: 0.50A 0.33A 0.33A 0.57E 0.65E - -E - -E
3rd: 0.23A 0.45A 0.45A 0.69E 0.72E - -E - -E
4th: 0.12A 0.52E 0.52E 0.74E 0.75E - -E - -E
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Year:$ 1.48A $ 1.50E $ 1.50E $ 2.50E $ 2.70E $ - -E $ - -E
Street Est.: $ 1.50E $ 1.49E $ 2.65E $ 2.63E $ - -E $ 3.10E
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Price (As of 10/14): $57 1/4 Revenue (1997): $1.7 Bil.
Return On Equity (97): 13.8 % Proj. 5yr EPS Grth: 18.0 %
Shares Outstanding: 86.9 Mil. Dividend Yield: Nil
Mkt Capitalization: 4.98 Bil. P/E 1997; 1998 : 38.2 X; 21.2 X
Current Book Value: $10.53 /sh Convertible: None
Debt-to-Capital: 2.9 % Disclosure(s): None
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* Teradyne held an upbeat analyst meeting today. Revenues could reach $385-
$390 mill.in Q4, with slightly higher margins. We are raising our 98 EPS
estimate to $2.70 from $2.50 and our 1 year price target to $78 from $65 per
share.
* The company is increasing its share of the including mixed signal and logic
tester markets. At the same time, semiconductor test markets are continuing
to grow rapidly, due to a shortage in overall test capacity.
* The bookings set the stage for strong growth. Overall orders were the
second highest ever, while semiconductor test orders reached a new record.
The company is capacity limited, but can still deliver positive EPS surprises.
* New technology promises to drive demand for Teradyne's advanced technology.
Rambus memories will create a need for much faster memory testers. The
growing sophistication of mixed signal chips also presents new opportunity.
* Buy Now! We think Teradyne is positioned for growth in both its
semiconductor and its non-semiconductor businesses in 1998 and 1999.
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BUSINESS DESCRIPTION: A leader in automatic test equipment for the
semiconductor industry, printed circuit board testers, telephone line testing
equipment and connection systems.
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Disclosure Legend: A-Lehman Brothers Inc. managed or co-managed within the
past three years a public offering of securities for this company. B-An
employee of Lehman Brothers Inc. is a director of this company. C-Lehman
Brothers Inc. makes a market in the securities of this company. G-The Lehman
Brothers analyst who covers this company also has position in its securities. |
