Analyst Expectations For Teradata's Future

Throughout the last three months, 8 analysts have evaluated Teradata (NYSE:TDC), offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Teradata and provided 12-month price targets. The average target is $44.5, accompanied by a high estimate of $60.00 and a low estimate of $32.00. Experiencing a 16.04% decline, the current average is now lower than the previous average price target of $53.00.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of Teradata by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Teradata's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

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Teradata's Financial Performance

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Decline in Revenue: Over the 3 months period, Teradata faced challenges, resulting in a decline of approximately -2.31% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Teradata's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 4.3%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Teradata's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 21.16%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.11%, the company showcases effective utilization of assets.

Debt Management: Teradata's debt-to-equity ratio stands notably higher than the industry average, reaching 11.65. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

How Are Analyst Ratings Determined?

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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