Wall Street analysts’ views on Teradata’s stock
Earlier in this series, we discussed Teradata’s (TDC) recent earnings as well as the announcement of a new CEO. FireEye (FEYE), which also announced its fiscal 1Q16 earnings on May 6, 2016, also announced a new CEO.
Teradata operates in the IT (information technology) consulting subsector. IBM (IBM) and Wipro (WIT) are prominent players in this space. Let’s take a look at select market-centric views and metrics from Teradata. Of the 25 analyst recommendations for Teradata stock, there were only two “buy” recommendations for Teradata. As we can see in the chart below, more than 70% of analyst recommendations on the stock were “hold.” The remainder were “sell” recommendations.
Teradata’s price performance
Teradata’s stock price movement during the past month has largely been positive. As of May 9, the company’s stock has risen ~12.8%. Teradata’s better-than-expected fiscal 1Q16 earnings boosted its stock. However, in the last one year, Teradata’s stock has lost ~31.1% of its value.
Analysts’ target prices
The Wall Street consensus target price for Teradata is $26.50 per share as of May 9, 2016. The median target price was $26.00 as of May 9, 2016. Teradata’s closing price was $27.20 on May 9, 2016. Recently, Summit Research upgraded Teradata’s stock to “hold” from a previous “sell” rating. The research house has a price target of $25.00 on Teradata’s stock.
Investors who wish to gain exposure to Teradata could consider investing in the Technology Select Sector SPDR ETF (XLK). While XLK invests ~0.10% of its holdings in Teradata, it invests ~37% of its holdings in application software.