Teradata (TDC) Stock Hurt by CLSA Downgrade

Teradata (TDC) stock closed lower on Friday after the company's rating was downgraded to 'underperform' from 'buy' at CLSA this morning.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Teradata (TDC) - Get Report closed down by 0.48% to $27.18 on Friday, as the company's rating was cut to "underperform" from "buy" at CLSA this morning. 

The firm lowered its price target to $29 from $35 on the stock. 

The downgrade is a result of concerns that customers will find alternatives to open source and Datawarehouse as a Service (DWaaS), CLSA said in a note. 

CLSA believes Amazon.com's (AMZN) data warehouse solution, 'RedShift,' will act as a competitor to the company. "Our recent work makes it clear that gains by Amazon's "RedShift" and Hadoop vendors come at the direct expense of Oracle (ORCL), IBM(IBM) and Teradata."  

The Dayton, OH-based company is a data analytics technology vendor.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate TERADATA CORP as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: TDC

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