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Teradata's Flow-Through Into H2 is Not Materializing After Better-Than-Expected H1, Morgan Stanley Says

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Teradata's (TDC) flow-through into H2 is not materializing after the company's better-than-expected H1, Morgan Stanley said in a Wednesday research note.

While accounting dynamics impacting pull-forward revenue have been acknowledged, Morgan Stanley said that if new or existing customers were accelerating adoption of the company's solutions, the same would be materializing in H2.

The potential for that exists with Teradata launching new offerings in Q2 that have gone general access in Q3, and its deferred revenue growing 8% and renewal rates improving, Morgan Stanley said, adding that when compared with other AI winners where growth is accelerating, Teradata growth deceleration in H2 still stands out.

Morgan Stanley lowered the company's price target to $35 from $40 and reiterated its overweight rating.

Price: $27.44, Change: $-6.95, Percent Change: -20.21%

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