Investors should consider buying into cloud database company Teradata, according to Guggenheim Partners. The firm upgraded Teradata to buy from neutral on Sunday with a $62 per share price target, which equates to 60% upside compared to the stock’s $38.71 closing price on Friday. So far this year, shares of Teradata have gained 15% through Friday’s close. The company focuses on consulting, cloud services and analytics for businesses. Guggenheim analyst Howard Ma thinks that Teradata is poised to outperform expectations for customer retention and grow revenue in its cloud sector. TDC YTD mountain Watch shares of Teradata for as much as 60% upside, Guggenheim Partners says. “We believe workloads that have moved or will likely move off of Teradata are generally less compute intensive (and hence, lower priced), but the complex workloads tied into core business logic are likely there to stay on Teradata in the near and mid-term, so the rate of decay in TDC’s installed base will likely be slower going forward,” Ma said. And despite some worry that Teradata customers could ultimately pivot to peer cloud computing company Snowflake , Ma says clients that have committed to making the switch doesn’t ensure the move is a guarantee. “Based on our partner checks, we believe that commitments don’t always manifest into actual migrations, and it seems like a lot of Teradata customers could eventually just stay put,” Ma said. — CNBC’s Michael Bloom contributed to this report.
Shares of this under-the-radar data analytics company can rally 60%, Guggenheim says