BMO Capital Markets Reiterates “Market Perform” Rating for Teradata Corp. (TDC)
Teradata Corp. (NYSE:TDC)‘s stock had its “market perform” rating reiterated by research analysts at BMO Capital Markets in a report released on Tuesday, Analyst Ratings Net reports.
The analysts wrote, “Based on guidance, this does not appear to be a one quarter slippage of deals. Management is lowering estimates for both Sept and Dec Qs. Sept Q revs are expected be $665 million vs. our/Street of $705/$700 million, and Dec Q revs are expected to be around $745 million vs. our/Street of $828/$827 million. We are unclear why emerging markets and Japan are so weak. We have been of the view that TDC’s longer-term revenue growth rate is 8%-10% y/y, not double digits. We note that US and European growth is roughly within this target growth rate. Therefore, we are left to wonder if emerging markets plus Japan are experiencing (1) macro demand weakness, (2) sales leadership, or (3) competitive issues. These geographies have been weak for a few quarters. If we assume that TDC can grow revs in the 7%-8% y/y range over the next two years, and EPS grows by 10%, this would suggest that EPS in FY15 could be about $3.30. Further, we believe that TDC should trade at a premium to the market with these growth rates, so perhaps a 16x-17x multiple. Therefore, we think TDC could, over time, return to a mid-$50 type of stock. However, as we head to a TDC user group event next week, we will seek to clarify the reason for the discrepancy between US/Europe and rest of world sales, and test our thesis that TDC can drive 7%-8% y/y top-line growth.”
Shares of Teradata Corp. (NYSE:TDC) traded down 16.50% on Tuesday, hitting $43.905. The stock had a trading volume of 15,203,809 shares. Teradata Corp. has a 52-week low of $48.11 and a 52-week high of $75.86. The stock has a 50-day moving average of $57.20 and a 200-day moving average of $56.10. The company has a market cap of $7.161 billion and a P/E ratio of 23.23.
Teradata Corp. (NYSE:TDC) last released its earnings data on Thursday, August 1st. The company reported $0.76 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.71 by $0.05. The company had revenue of $670.00 million for the quarter, compared to the consensus estimate of $670.70 million. During the same quarter in the previous year, the company posted $0.77 earnings per share. The company’s revenue for the quarter was up .8% on a year-over-year basis. On average, analysts predict that Teradata Corp. will post $3.05 earnings per share for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at William Blair reiterated an “outperform” rating on shares of Teradata Corp. in a research note to investors on Tuesday. Separately, analysts at KeyCorp reiterated a “hold” rating on shares of Teradata Corp. in a research note to investors on Tuesday. Finally, analysts at Wellington Shields downgraded shares of Teradata Corp. to a “hold” rating in a research note to investors on Tuesday. One investment analyst has rated the stock with a sell rating, twelve have given a hold rating and twelve have assigned a buy rating to the company. Teradata Corp. currently has an average rating of “Hold” and an average target price of $60.28.
Teradata Corporation (NYSE:TDC) is engaged in analytic data solutions, including integrated data warehousing, big data analytics and business applications.
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