Piper Jaffray Reports Teradyne Downgraded To Neutral

In a report published by Piper Jaffray, Teradyne

is downgraded to Neutral. Piper Jaffray said that it is seeing increasing evidence of over investment in foundry capacity and believe that TSMC and Samsung have pushed out orders, as foundry demand is weakening. “We believe that non-Apple tablet demand has been significantly below forecast. In addition, we believe that smartphone makers collectively expect market share in excess of the market size. Finally, we believe that PCs will slow in 2H:11 as an over build in Q2 impacts demand in Q3 and a model change over in Q4 impacts demand in Q4. We think that this weaker than expected demand likely impacts TER's order momentum over the next couple of quarters and we are cutting our estimates going forward. We believe that TER is well positioned, but fairly valued on our new lower estimates. ” Teradyne closed yesterday at $18.22.