Analyst Erik Woodring from Morgan Stanley maintained a Buy rating on Teradata (TDC – Research Report) and increased the price target to $28.00 from $26.00.
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Erik Woodring has given his Buy rating due to a combination of factors that suggest positive future performance for Teradata. Despite some market volatility and mixed results in the first quarter, Teradata’s Cloud ARR significantly exceeded expectations, and the company’s EPS grew by over 20%, indicating strong underlying business progress. Although total and recurring revenues were slightly below expectations, the lack of deal slippage and improved retention rates were positive indicators.
Woodring believes that Teradata’s technology remains crucial in the evolving GenAI landscape, and anticipates stabilization of key performance indicators such as ARR growth and retention rates by 2025. The company’s ability to close large cloud migrations and outperform conservative Cloud ARR guidance further supports this outlook. Consequently, Woodring has increased the price target to $28, reflecting confidence in Teradata’s potential for revenue growth and a return to total recurring revenue growth by 2026.