Wall Street analysts’ views of Teradata’s stock
Earlier in this series, we discussed Teradata’s (TDC) performance in its recently announced 2Q16 earnings. Although Teradata’s earnings exceeded analysts’ expectations, the company reported a decline on a year-over-year basis.
Teradata operates in the IT (information technology) consulting subsector. IBM (IBM), Infosys (INFY), Accenture (ACN), and Wipro (WIT) are prominent players in this space. Let’s take a look at select Market-centric views and metrics for Teradata.
Of the 23 recommendations for Teradata’s stock, there was only one “buy” recommendation. As we can see in the above chart, more than 70% of analysts gave the stock “hold” recommendations. The remaining analysts gave the stock “sell” recommendations.
Although Teradata’s 2Q16 results exceeded analysts’ expectations, analysts’ recommendations on Teradata’s stock haven’t changed after 2Q16 results.
Teradata’s price performance
Teradata’s stock price movement over the past month has mainly been positive. As of August 2, 2016, the company’s stock has risen ~16.5%. Teradata’s 2Q16 earnings exceeded analysts’ expectations. This boosted its stock, which surged ~3.6% to $29.42 on August 2.
However, in the past year, Teradata’s stock has lost ~20.7% of its value. Teradata’s stock has suffered due to increased competition from Amazon’s (AMZN) Redshift, which led CLSA to downgrade Teradata from “buy” to “underperform.”
Analysts’ target prices
Wall Street analysts’ consensus target price for Teradata is $26.71 per share, as of August 2. The median target price is $26.00, as of August 2. Teradata’s stock closed at $29.42 on the day.