PHILADELPHIA, Oct 25 (Reuters) - Teradata Corp, which analyzes business trends, is poised for growth as its customers begin to reinvest in themselves, according to Barron's.
Teradata has a strong balance sheet, with no debt, about $4 per share in cash, free cash flow yield of 10 percent, and return on invested capital of about 30 percent, Barron's reported in an electronic edition.
The company also is adding to its product line, expanding its sales territories and its sales force to handle the broadened range of industries it plans to serve, Barron's said.
If Teradata deliver revenue growth at the upper end of its historical range of 7 percent to 9 percent, that would help reach its goal of 23 percent operating margins in 2010, up from the current 18 percent, Barron's said.
That would translate into operating-profit growth in the mid-to-high teens and earnings-per-share growth around 20 percent in the next three-to-five years, Barron's reported. That could boost the stock price to as high as $52 a share, up from its closing stock price on Friday of $28.33.
Teradata, which has a market capitalization of about $5 billion, also could be a an attractive takeover target, Barron's said.
Teradata could not be immediately reached for comment.
(Reporting by Jessica Hall; Editing by Diane Craft)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: TERADATA/BARRONS (jessica.hall@thomsonreuters.com; 215-922-1086; Reuters Messaging: jessica.hall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Teradata has a strong balance sheet, with no debt, about $4 per share in cash, free cash flow yield of 10 percent, and return on invested capital of about 30 percent, Barron's reported in an electronic edition.
The company also is adding to its product line, expanding its sales territories and its sales force to handle the broadened range of industries it plans to serve, Barron's said.
If Teradata deliver revenue growth at the upper end of its historical range of 7 percent to 9 percent, that would help reach its goal of 23 percent operating margins in 2010, up from the current 18 percent, Barron's said.
That would translate into operating-profit growth in the mid-to-high teens and earnings-per-share growth around 20 percent in the next three-to-five years, Barron's reported. That could boost the stock price to as high as $52 a share, up from its closing stock price on Friday of $28.33.
Teradata, which has a market capitalization of about $5 billion, also could be a an attractive takeover target, Barron's said.
Teradata could not be immediately reached for comment.
(Reporting by Jessica Hall; Editing by Diane Craft)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: TERADATA/BARRONS (jessica.hall@thomsonreuters.com; 215-922-1086; Reuters Messaging: jessica.hall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.