UPDATE: FBN Securities Downgrades Teradata to Sector Perform on Growth Slowdown
FBN Securities reduced its rating on Teradata (NYSE: TDC) from Outperform to Sector Perform and lowered its price target from $85 to $70.
FBN Securities said, "After growing by 16% ex-acquisitions at CC in F2011, the company grew revenue by only 10% at CC and 7% as reported in FQ3 2012. Moreover, calculated billings of $590M grew by only 4% as deferred revenue of $382M declined by 12% ($58M) Q/Q. The primary culprit is weakness in the Americas (also pointed out by CTXS, FFIV, QLIK and others) where TDC has 59% revenue exposure. Moreover, with the new FQ4 guidance (and assuming a 1pp currency hit vs. 3pp in FQ3), the company's constant currency growth rate is expected to decelerate further (to only 8% in FQ4 from 10% in FQ3). Even though the company is sticking to its LT double-digit revenue growth target, we are now modeling revenue growth in F2013 of only 9%."
Teradata closed at $63.60 on Monday.
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