Teradata initiated with an Outperform at Evercore ISI

Evercore ISI analyst Chirag Ved initiated coverage of Teradata with an Outperform rating and $65 price target. Teradata’s platform has evolved to a point where the company is now more competitive in hybrid cloud environments, the analyst tells investors in a research note. The firm says the shift to a more recurring revenue business model should allow for “durable” revenue and earnings growth, “which provides optionality.” It views Teradata as one of the only vendors today that offers customers the flexibility of running their data platforms across both hybrid and multi-cloud environments. Evercore says the stock offers investors a “value-oriented way” to get exposure to the growing importance of data in a generative artificial intelligence world.