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TDC: Ongoing Antitrust Litigation And AI Initiatives Will Drive Risk-Reward Balance

GenAI Advancement Will Reshape Cloud Integrations While Margin Contractions Linger

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TDC
AnalystConsensusTarget
Not Invested
Published 09 Sep 2024
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Update shared on 07 Nov 2025

Fair value Increased 5.45%
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27 Jun
US$34.39
AnalystConsensusTarget's Fair Value
US$34.88
1.4% undervalued intrinsic discount
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Narrative Update on Teradata: Analyst Price Target Revision

Analysts have raised their price target for Teradata by approximately $1.33 to $25.78. They cite improved profit margins and a more favorable revenue outlook as key factors for the adjustment.

What's in the News

  • The U.S. Supreme Court declined to hear SAP's appeal in the ongoing antitrust case brought by Teradata, allowing litigation to continue (Reuters).
  • Teradata issued updated financial guidance for 2025, with projected GAAP diluted EPS for the full year expected to be in the range of $1.22 to $1.26. The company also reaffirmed flat to slightly increased Annual Recurring Revenue targets.
  • Teradata introduced new AI Services to help enterprises transition AI pilots into production-ready solutions, addressing challenges such as data fragmentation and governance.
  • The company announced the launch of Autonomous Customer Intelligence, an offering that uses AI agents to drive real-time, context-aware customer actions at scale.
  • AgentBuilder, a suite designed to accelerate the development of autonomous AI agents, was launched in private preview. The suite includes ready-to-use agents and integration of open-source frameworks.

Valuation Changes

  • Fair Value has increased slightly from $24.44 to $25.78.
  • Discount Rate has declined modestly from 9.27% to 9.09%.
  • Revenue Growth has improved from -0.85% to -0.07%.
  • Net Profit Margin has risen from 6.22% to 7.30%.
  • Future P/E has decreased from 28.25x to 23.93x.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.