Teradyne Sees More Than 50% Growth In 'Cobots' Revenues, Says Deutsche Bank

Deutsche Bank said Teradyne, Inc. (NYSE: TER) "appears very confident" cobot revenues can increase more than 50 percent for many years amid the rapidly expanding market.

Cobots are robots that work alongside humans, and Teradyne estimates the total available market to grow from about $100 million in 2015 to $1 billion plus in 2020.

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"At this rate, we estimate cobots could grow from 5 percent of TER sales in 2016 to 20–25 percent in 2020," analyst Sidney Ho wrote in a note.

Ho noted that up to this point, "Teradyne has been most successful with small and medium enterprises given affordable prices ($20 thousand–$50 thousand), ease of programmability and fast payback (6–12 months), along with a strong network of system integrators and distributors."

At the time of writing, shares of Teradyne were up 2.17 percent at $20.26.