Market Overview

UPDATE: FBN Securities Downgrades Teradata to Sector Perform on Growth Slowdown

Related TDC
UPDATE: Teradata Shares Gain On Upbeat Q3 Earnings
Earnings Scheduled For November 6, 2014
Making Money With Charles Payne: 10/29/14 (Fox Business)

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.

Latest Ratings for TDC

DateFirmActionFromTo
Dec 2014Great LakesDowngradesGradually AccumulateHold
Sep 2014Monness Crespi HardtInitiates Coverage onSell
Sep 2014Pacific CrestInitiates Coverage onSector Perform

View More Analyst Ratings for TDC
View the Latest Analyst Ratings

Posted-In: FBN SecuritiesAnalyst Color Downgrades Intraday Update Analyst Ratings

 

Related Articles (TDC)

Around the Web, We're Loving...

Get Benzinga's Newsletters