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Research Alert: CFRA Lowers Opinion On Teradata Corporation To Hold From Buy

· 02/05/2021 10:06

03:00 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We boost our 12-month target to $40 from $29, 24.4x our '21 EPS estimate, deeply discounted to enterprise data warehouse (EDW) peers and partly warranted by past growth challenges. With shares now up ~70% YTD, profit-taking is prudent, resulting in our downgrade. That said, the company's outlook remains bright, with the pivot to a subscription-based model now behind it and expectations of revenue growth in 2021. We think shares could be further re-rated (trades at EV/Sales of ~2x our 2021 view) if the company can maintain its 100%+ run-rate of public cloud annual recurring revenue (ARR) growth. Encouragingly, the company also disclosed how it beat out much more publicized EDW peers (SNOW 305 ***) for recent client wins, given its workload capabilities and hybrid platform (e.g., cloud and on-premise). TDC prints Q4 adj-EPS of $0.38 vs $0.22, surpassing consensus by $0.13. Q4 revenues came in at $491M, topping consensus by $15M, driven by ARR growth. We keep our 2021 EPS view of $1.64 and set 2022's at $1.94.