NEW YORK (TheStreet) -- Teradata Corp. (TDC) shares are down -2.3% to $43.58 in early market trading on Monday after being downgraded to "market perform" from "outperform" by analysts at JMP Securities.
The firm believes that increased competition from alternative data platforms like Hadoop, Redshift and NoSQL will stymie the growth of the analytic data solutions provider.
"While we acknowledge that Teradata is not an "expensive" stock, we simply believe that the "price per terabyte" trendline is downward sloping and that Teradata may struggle to grow, and with the stock up 16% off its 52-week lows, we think now is a good time to step to the sidelines," said analysts.
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TheStreet Ratings team rates TERADATA CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TERADATA CORP (TDC) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."