TD Cowen analyst Derrick Wood maintained a Hold rating on Teradata today and set a price target of $24.00.
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Derrick Wood has given his Hold rating due to a combination of factors influencing Teradata’s current and future performance. The company reported a slight beat in its second-quarter results, with annual recurring revenue (ARR) growth exceeding expectations, driven by improved execution and some deals being pulled forward from the third quarter. However, the full-year 2025 revenue guidance was lowered due to weakness in consulting, and while there is increased demand for on-premises systems due to AI interest, it is not yet significant enough to impact overall performance.
Despite the positive execution in a challenging macroeconomic environment, the guidance remains mixed, with consecutive quarters of lowered revenue forecasts. The cloud ARR growth is expected to be below the full-year guidance levels in the third quarter due to the dynamics of the second quarter. Additionally, while there is potential for growth in on-premises workloads with new AI capabilities, more evidence is needed to confirm this as a trend. Consequently, the price target was slightly reduced to $24, and the Hold rating was maintained.
Wood covers the Technology sector, focusing on stocks such as Oracle, Klaviyo, Inc. Class A, and Microsoft. According to TipRanks, Wood has an average return of 12.0% and a 54.73% success rate on recommended stocks.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $23.50 price target.