Teradata downgraded at Morgan Stanley on previously unexpected headwinds

As previously reported, Morgan Stanley downgraded Teradata to Equal Weight from Overweight with a price target of $48, down from $74, following the company’s Q4 report and guidance. Last night’s earnings results and 2024 guidance shows the company’s ongoing transformation is “not linear, or gaining momentum to the same degree we previously expected,” says the analyst, who sees Teradata facing a set of previously unexpected headwinds – including cloud deal elongation and on-premise erosion – that will constrain revenue acceleration and limit multiple expansion in 2024.