UBS initiated coverage of Teradata with a Sell rating and $32 price target. While some execution-related risk is likely priced in, six of seven customer checks are migrating off Teradata in the next 6-24 months, the analyst tells investors in a research note. As such, the firm sees downside risk to Teradata’s 2025 cloud annual recurring revenue guidance of $1B and free cash flow guidance of $450M. UBS is hearing about an architectural shift towards a more open data lake architecture that could “materially disrupt” Teradata’s existing data warehouse market.
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