What happened
Shares of Teradata (NYSE: TDC) 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.
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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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Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Teradata. The Motley Fool has a disclosure policy.
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