UPDATE: Goldman Sachs Assumes Buy on Teradata on Sustainable EPS Growth

Goldman Sachs assumed coverage on Teradata

with a Buy rating. Goldman Sachs noted, "We believe Teradata can sustain high-teens EPS and FCF growth over the next several years as it gains share in the $11bn data warehousing market. We see the market moving in Teradata's direction as line-of-business (LOB) heads increasingly drive purchase decisions, customers continue to streamline data mart fragmentation, and the company's technical performance lead is maintained. We also believe Teradata's Aster Data solution (for unstructured data) uniquely positions the company to bring MapReduce/Big Data capabilities to the enterprise. We expect 30% stock appreciation over the next 12 months as investors maintain confidence in growth and Teradata posts upside to consensus. Our 2013E and 2014E EPS are 6% and 10% above Street consensus." Teradata closed at $73.00 on Thursday.