Analyst Erik Woodring of Morgan Stanley maintained a Buy rating on Teradata, boosting the price target to $40.00.
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Erik Woodring has given his Buy rating due to a combination of factors tied to Teradata’s improving fundamentals and positioning in AI-driven data growth. He highlights that 2025 stabilized the business, with better customer retention, the first quarter of revenue and ARR growth since 2023, and clear guidance for recurring revenue and free cash flow to grow in 2026.
He also points to Teradata’s hybrid deployment model and concentration in large enterprises, which are early adopters of generative AI and should drive incremental data and workload volumes. Coupled with cost reductions from 2024–2025 that are set to expand margins, and a valuation he views as attractive relative to earnings, free cash flow, and recurring revenue, he believes the shares offer favorable risk‑reward and justifies a $40 price target.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $49.00 price target.