Mizuho Securities Remains Sidelined on Teradata Corp. (TDC) After Adjusting Estimates

August 22, 2016 8:44 AM EDT
Get Alerts TDC Hot Sheet
Price: $28.44 +0.07%

Rating Summary:
    4 Buy, 21 Hold, 8 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
Trade TDC Now!
Join SI Premium – FREE

Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.

Mizuho Securities reiterated a Neutral rating and $28.00 price target on Teradata Corp. (NYSE: TDC). Mizuho believes that the company will have a hard time posting sustainable revenue growth for the next couple of years. In addition to rethinking its product, management will need to redesign its goto-market to appeal to business users in addition to IT, which could take time to yield results. Mizuho lowered revenue growth estimates for FY17 to -3% Y/Y vs. consensus of flat growth. EPS is now expected to be $2.12 (from $2.52) vs. consensus of $2.48.

Analyst Abhey Lamba commented, "Given significant change underway at TDC, we believe the company is unlikely to post sustainable revenue growth for the next couple of years. We are encouraged by recent product and go-to-market initiatives but they will likely result in significant pressure on n-t revenue growth and margins. We expect a transition to a more ratable model over time to result in reduction in n-t estimates. As such, we lower our estimates while maintaining our Neutral rating and $28 PT and see limited upside to valuation from current levels."

For an analyst ratings summary and ratings history on Teradata click here. For more ratings news on Teradata click here.

Shares of Teradata closed at $31.67 yesterday.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Add Your Comment