e.l.f. Beauty stock plummets 20% as revenue and guidance fall short of expectations
Investing.com - UBS maintained its Neutral rating and $23.00 price target on Teradata (NYSE:TDC) on Friday. According to InvestingPro data, the stock currently trades at a P/E ratio of 19.01 and appears undervalued based on Fair Value analysis.
The firm’s analysis suggests a potential bull case for Teradata hinges on Total ARR growth stabilizing around breakeven in upcoming quarters before returning to low single-digit growth next year.
UBS models approximately 1% Total ARR growth for Teradata in fiscal years 2026 and 2027, with the possibility of eventually reaching mid-single digit growth rates.
The firm also anticipates free cash flow margins could expand significantly, potentially over 300 basis points year-over-year in fiscal year 2026, driven by cost controls and operating leverage.
UBS believes near-term downside for Teradata stock appears limited, noting it trades at approximately 7.5 times their calendar year 2026 free cash flow estimate, with investor sentiment remaining cautious.
In other recent news, Teradata Corp reported strong financial results for the second quarter of 2025. The company achieved earnings per share (EPS) of $0.47, exceeding analysts’ expectations of $0.40, which represents a 17.5% earnings beat. Additionally, Teradata’s revenue reached $408 million, slightly surpassing the forecasted $400.89 million. These results indicate a positive performance for the company, as reflected by the favorable reaction from investors. The earnings announcement was followed by an increase in Teradata’s stock in aftermarket trading. Analysts had anticipated these figures, and the actual results have validated their projections. This development highlights Teradata’s capability to outperform market expectations.
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