In a report released today, Derrick Wood from TD Cowen maintained a Hold rating on Teradata, with a price target of $24.00.
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Derrick Wood has given his Hold rating due to a combination of factors surrounding Teradata’s strategic advancements and current market positioning. Teradata’s recent announcements at their Possible conference highlight a focus on enhancing their product offerings, particularly with a new GPU-enabled hardware stack aimed at addressing compute elasticity, a significant customer concern. While this development could potentially drive future growth, its rollout is not expected until 2026, indicating a longer-term impact on the company’s performance.
Additionally, Teradata’s positioning in AI workloads, with a strong emphasis on price/performance ratios and query efficiency, suggests potential competitive advantages. However, the need for tangible execution and market traction in these areas remains a critical factor. The company’s efforts to integrate AI into customer intelligence and expand its CX offerings are promising, yet the immediate impact on financial performance is uncertain. These elements contribute to a cautious outlook, justifying the Hold rating as investors await clearer evidence of execution and market uptake.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $24.00 price target.