Teradata Downgraded As Rivals Like Amazon Gain Steam

Teradata Corp. was downgraded to market underperform from market outperform at JMP Securities Monday morning on fears investors are underestimating the company's competition. The brokerage also lowered its 12-month price target to $30, implying a 22% decrease from Friday's closing price of $38.57. In a note to clients, JMP analyst Greg McDowell said Teradata's current valuation underestimates the difficulties the company is facing, and will likely continue to face over the next few years, with regards to the rise of alternative data platforms, such as Hadoop, Amazon Redshift and NoSQL. He said those enterprise big-data platforms are growing at the expense of Teradata, which may, in turn, put pricing pressure on Teradata and impact revenue growth. Its shares were inactive in premarket trade.