Benzinga | Sep 20, 2021 07:52AM EDT

Why Morgan Stanley Sees 30.4% Upside In Teradata?

* Morgan Stanley analyst Katy Huberty upgraded Teradata Corp (NYSE:TDC) to Overweight from Equal Weight with a $66 price target, up from $55, implying a 30.4% upside.

* Following recent meetings with management, Huberty is more confident in the long-term model and tells investors that a shift in engineering spends and go-to-market resources increase her confidence in Cloud Annual Recurring Revenue or ARR and growth in new customers.

* Huberty contends "now is the time to buy the stock" as the recent pullback on weaker 2022 guidance at the company's analyst day related to revenue pull forward has created an entry point ahead of what she views as an inflection in Teradata's "underappreciated" Cloud business.

* Price Action: TDC shares traded lower by 0.02% at $50.6 in the premarket session on the last check Monday.