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Benzinga Insights

Assessing Teradata: Insights From 6 Financial Analysts

In the last three months, 6 analysts have published ratings on Teradata (NYSE:TDC), offering a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 1 2 1
Last 30D 0 0 0 1 0
1M Ago 0 0 0 0 0
2M Ago 0 2 1 1 1
3M Ago 0 0 0 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $31.83, a high estimate of $37.00, and a low estimate of $26.00. This upward trend is evident, with the current average reflecting a 2.12% increase from the previous average price target of $31.17.

Understanding Analyst Ratings: A Comprehensive Breakdown

A comprehensive examination of how financial experts perceive Teradata is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Raimo Lenschow Barclays Raises Underweight $30.00 $29.00
Nehal Chokshi Northland Capital Markets Lowers Outperform $37.00 $38.00
Austin Dietz UBS Raises Sell $26.00 $24.00
Matthew Hedberg RBC Capital Maintains Sector Perform $32.00 $32.00
Raimo Lenschow Barclays Lowers Underweight $29.00 $30.00
Chirag Ved Evercore ISI Group Raises Outperform $37.00 $34.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Teradata. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Teradata compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Teradata's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Teradata's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Teradata analyst ratings.

Unveiling the Story Behind Teradata

Teradata Corp provides analytic data products and related services. The Company operates in data and analytics, which captures, integrates, stores, manages, and analyzes data of all types to answer business questions and deliver insight; and marketing applications, which offer marketing management products to help businesses win customer loyalty. Its solutions include components such as data warehousing, Asset optimization, Fraud prevention, Product innovation, and risk mitigation. A majority of the firm's revenue is generated in the United States.

Financial Insights: Teradata

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Teradata displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 0.46%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Teradata's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 7.27%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Teradata's ROE excels beyond industry benchmarks, reaching 32.0%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Teradata's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.95% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Teradata's debt-to-equity ratio stands notably higher than the industry average, reaching 4.74. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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