TDC - Teradata: Much More Enticing Now Than Last Year But Uncertainty Lingers
2024-06-14 04:27:04 ET
Summary
- Teradata's stock price dropped 40% since my last analysis, prompting a revisit of its performance in 2023.
- Revenue growth has been slow, with Public Cloud segment outperforming.
- Valuation analysis suggests an intrinsic value of $36.6 per share, currently trading at a slight discount.
- Uncertainties remain regarding Public Cloud growth. Reiterating a hold rating.
Introduction
About a month ago, I got a price alert that one of my stocks on the watchlist had hit the target. That company was Teradata ( TDC ). Since the last time I covered the company, its share price tumbled 40%, so I thought it may be a good time to revisit and see how well it has performed throughout 2023 and whether it would be a good time to start a position now that it is so much more attractive. Cloud has been a decent performer overall, while the rest were laggards, however, I would like to see Cloud growth reaccelerate before pulling the trigger at these price levels. Therefore, I am reiterating a hold rating until I get more information on revenue progression....
Teradata: Much More Enticing Now Than Last Year, But Uncertainty Lingers