Ahead Of The Bell: Teradyne Shares Rise On Upgrade

NEW YORK (AP) — Teradyne Inc. shares climbed in premarket trading Tuesday after Oppenheimer & Co. upgraded the chip testing equipment maker's stock, citing a key new contract and cost cutting.

Shares of Teradyne, based in North Reading, Mass., jumped 68 cents, or 8 percent, to $8.95 ahead of regular trading.

In a note to investors, Oppenheimer analyst Gary Hsueh upgraded the company to "Outperform" from "Perform."

He cited a new contract to provide equipment for Qualcomm Inc., the wireless communications chip maker, saying the deal "delivers a gut-punch" to rival Verigy Ltd.

Hsueh also pointed to better predictability in orders from network chip maker Broadcom Corp. in the fourth quarter.

"Combined with unprecedented cost cutting, (Teradyne) is now ripped, with big muscles," he said.