UPDATE: Needham & Company Upgrades Teradata (TDC) to Buy

December 20, 2021 5:24 AM EST
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Price: $36.06 +3.26%

Rating Summary:
    10 Buy, 19 Hold, 7 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 6 | Down: 4 | New: 6
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(Updated - December 20, 2021 5:24 AM EST)

Needham & Company analyst Jack Andrews upgraded Teradata (NYSE: TDC) from Hold to Buy with a price target of $64.00.

The analyst comments "We are upgrading TDC to a BUY and establishing a new $64 price target for four main reasons: 1) our valuation work implies that TDC is currently priced as if the company will either experience sustained revenue declines or flattish ARR growth over the next several years, which we view as unlikely, because; 2) our fundamental work on TDC’s competitive position reveals that the company actually has a lower TCO versus other cloud-native DWs for high compute, enterprise-grade workloads, so we believe TDC has a differentiated value proposition; 3) assuming very modest growth in ARR and revenue over the next several years yields upside through multiple valuation lenses; and 4) if TDC is able to continue ramping its burgeoning cloud ARR, we expect substantial upward revisions to consensus estimates, which would yield even further upside."

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 $42.76 yesterday.


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