Erik Woodring, an analyst from Morgan Stanley, maintained the Hold rating on Teradata (TDC – Research Report). The associated price target remains the same with $29.00.
Erik Woodring has given his Hold rating due to a combination of factors impacting Teradata’s current market position. The company has undergone significant transformations over the past decade, shifting from an on-premise data warehousing provider to a cloud-first and hybrid approach. Despite these strategic changes, Teradata faces several challenges, including slower-than-expected growth in cloud annual recurring revenue, increased competition, and a stronger US dollar, all of which have negatively impacted investor confidence and the company’s stock performance.
Additionally, Teradata’s recent financial performance has been underwhelming, with the stock trading at a four-year low and a significant decline in value over the past year. The departure of the CFO has also created uncertainty in the company’s leadership. While there is potential for strategic improvements and activist investors pushing for change, the immediate outlook remains uncertain, leading to the Hold rating as the company needs to demonstrate more consistent execution in the near term.