Goldman Sachs Initiates Coverage On Teradata Corporation

Goldman Sachs is out with a research report on Teradata Corporation TDC and is initiating coverage with a Neutral rating and a $55 price target on shares. In a note to clients, Goldman Sachs writes, "We are initiating coverage of Teradata with a Neutral rating and a 12- month price target of $55. We believe the data warehousing industry has a favorable secular backdrop, but mounting competitive and macro pressures could mitigate this tailwind to some degree. Net-net, we forecast Teradata to deliver an 11% revenue CAGR over 2010-2013E in this environment, with growth of 8.6% in 2012 and 6.9% in 2013. In our view, the stock's current valuation (relative to its hardware, software, services, and data analytics peers) fully prices in this potential." Shares of TDC lost $2.68 yesterday to close at $51.27, a loss of 4.97%.