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Why Teradata Stock Soared Today

By Evan Niu, CFA - Updated Feb 8, 2021 at 1:08PM

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The cloud analytics specialist gets an upgrade from Wall Street.

What happened

Shares of Teradata (TDC 0.51%) have soared today, up by 18% as of 12:40 p.m. EST, after getting an upgrade from Wall Street. JMP Securities boosted its rating on Teradata from market perform to outperform while assigning a price target of $70, which represents nearly 90% upside from Friday's closing price.

So what

Additional details regarding the upgrade were not immediately available, but the bullishness is outweighing other analyst activity today. Bernstein reiterated a market perform rating (equivalent to neutral) this morning while raising its price target from $22 to $28. UBS maintained its sell rating on the stock while adjusting its price target from $19 to $28.

Green stock chart going up

Image source: Getty Images.

Now what

The analyst changes come after Teradata reported strong fourth-quarter results last week, which sent the stock up by 37% on Friday. The cloud-analytics technology company crushed analyst expectations while issuing a rosy forecast for the first quarter as well as full-year 2021.

Public cloud annual recurring revenue (ARR) is expected to soar by 165% in the first quarter, which should result in adjusted earnings per share of $0.38 to $0.40. The consensus estimate currently calls for $0.32 per share in adjusted profits in the first quarter.

For 2021, Teradata expects public cloud ARR to double, while total ARR should grow at a mid- to high-single-digit percentage. The company's outlook calls for adjusted EPS of $1.50 to $1.58 for 2021, which is mostly in line with the $1.52 that Wall Street analysts are modeling for.

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Stocks Mentioned

Teradata Corporation Stock Quote
Teradata Corporation
TDC
$35.84 (0.51%) $0.18

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