Skip to main content

Market Overview

Bernstein: Teradata Positioned To Expand Recurring Revenue Growth

Bernstein: Teradata Positioned To Expand Recurring Revenue Growth

Data company Teradata Corporation (NYSE: TDC)’s new subscription and rental offerings are likely to drive strong annual recurring revenue growth through 2020, according to Bernstein. 

The Analyst

Zane Chrane of Bernstein upgraded Teradata shares from Underperform to Market-Perform and raised the stock’s price target from $33 to $39.

The Thesis

New subscription offerings are likely to grow the portion of Teradata’s revenue that is recurring and lead to sustainable and consistent revenue streams over the long run, Chrane said in a Monday note. 

“We forecast Teradata can grow total [annual recurring revenue] at a 9-percent CAGR through fiscal 2020, driven largely by growth in the company's new subscription/rental offerings," the analyst said. 

Tetradata is also positioned to capture upside from increased market-wide capital expenditures spending, which is expected to grow at nearly 5 percent in 2018 and primarily trickle toward modernizing IT and cloud initiatives, Chrane said. 

Price Action

Tetradata shares were up more than 6 percent at $41.56 late in Monday's trading session. 

Related Links:

Morgan Stanley Swings From Cautious To Bullish On IT Hardware

Why Oracle Expects 2018 To Be The Cloud Sales 'Tipping Point'

Latest Ratings for TDC

Feb 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021JMP SecuritiesUpgradesMarket PerformMarket Outperform
Feb 2021Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for TDC
View the Latest Analyst Ratings


Related Articles (TDC)

View Comments and Join the Discussion!

Posted-In: Bernstein big data Zane ChraneAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

WINGCowen & Co.Maintains150.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at