02:00 PM EDT, 04/25/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our target by $39 to $104, 23x our '25 EPS view, near peers and above TER's three-year average (~19x) on rising test demand to support AI applications. We raise our '24 EPS view by $0.54 to $3.15 and raise our '25 view by $0.16 to $4.53. TER posted Q1 sales of $600M (-3% Y/Y) and EPS of $0.51 (-7%), both above consensus, with a strong Q2 guide. Strength is being driven by higher demand for memory testing (18% of Q1 sales) to enable HBM/AI, and we expect continued momentum for multiple years, with the HBM test market growing five-fold in '24 and TER capturing ~40% share (vs. ~50% today). However, we see memory strength being partially offset by near-term weakness in certain segments of SoC test (50% of Q1 sales), including automotive, mobile, and (especially) industrial, with low unit volume dragging down mobile despite future upside from potential growth in AI-enabled smartphones (likely in '25). We increasingly think TER can grow sustainably despite our skeptical view on Robotics (sales -1% Y/Y).