UBS Maintains a 'Neutral' on Teradata (TDC); Maintaining a Cautious Stance
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Price: $27.68 +0.18%
Rating Summary:
11 Buy, 21 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
11 Buy, 21 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on Teradata (NYSE: TDC) price target lowered from $62 to $54.
UBS analyst says, "Key Concerns: 1) TDC has some of the highest ASPs in software ($3-$5M average deal sizes), which puts the company at a higher risk for sales cycle delays. 2) Software seasonality – the early part of the calendar year tends to be the most difficult for software stocks as IT budgets are not yet finalized and spending slows after any year-end budget flush. 3) Aggressive competition (SAP also took away support for BW 3Q11) and potential pricing pressure. 4) Financial services exposure 2.8% (highest of our group) and EMEA 23% CY10."
"Positives: 1) Benefitting from the growth of data, analyses, and different types of data. 2) In our view, achievable 4Q bar of 17% y/y revs growth on a 10% comp (vs. 3Q growth of 24% on a 15% comp), and CY12 Street estimates of 11% revs growth and 13% EPS growth (vs. 4Q10’s CY11 guidance of 12-14% revs growth and 13-18% EPS growth). 3) Increased sales opportunities with a broader product portfolio and non-subscription customers needing to upgrade to get Database 14."
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 $49.03 yesterday.
UBS analyst says, "Key Concerns: 1) TDC has some of the highest ASPs in software ($3-$5M average deal sizes), which puts the company at a higher risk for sales cycle delays. 2) Software seasonality – the early part of the calendar year tends to be the most difficult for software stocks as IT budgets are not yet finalized and spending slows after any year-end budget flush. 3) Aggressive competition (SAP also took away support for BW 3Q11) and potential pricing pressure. 4) Financial services exposure 2.8% (highest of our group) and EMEA 23% CY10."
"Positives: 1) Benefitting from the growth of data, analyses, and different types of data. 2) In our view, achievable 4Q bar of 17% y/y revs growth on a 10% comp (vs. 3Q growth of 24% on a 15% comp), and CY12 Street estimates of 11% revs growth and 13% EPS growth (vs. 4Q10’s CY11 guidance of 12-14% revs growth and 13-18% EPS growth). 3) Increased sales opportunities with a broader product portfolio and non-subscription customers needing to upgrade to get Database 14."
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 $49.03 yesterday.
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