Analysts Offer Insights on Technology Companies: Teradata (NYSE: TDC), Imperva (NYSE: IMPV) and Marvell (NASDAQ: MRVL)By Carrie Williams
Analysts fell to the sidelines weighing in on Teradata (NYSE: TDC), Imperva (NYSE: IMPV) and Marvell (NASDAQ: MRVL) with neutral ratings,indicating that the experts are neither bullish nor bearish on the stocks.
Teradata (NYSE: TDC)
“We are positive on subscription pricing, Intelliflex and software advances. While we maintain a skeptical view on the prospects for a sustainable turnaround and a return to growth in the short run, the three areas we did come away slightly more constructive on were (1) Intelliflex, a modular off-the-shelf compute and storage system that it plans to standardize on going forward, (2) subscription offerings that could help accelerate sales cycles versus multi-million-dollar upfront commitments that it previously required, and (3) new software advances optimized to run in hybrid, private and public cloud environments. $4 billion dream elevates execution risks as investments rise in 2017. 2016 will mark the fourth consecutive year product revenue declines, making its plan to expand revenue to $4 billion in 2021 from $2.25 billion in 2016 seem overly ambitious. This is on top of a model transition from perpetual to subscription with the intent to reach a 91% recurring mix by 2021. The level of investment required to support this type of growth is our biggest concern. For example, next year the company plans to invest $100 million in operating expenses while revenue could compress 5% to 10% at the same time on a mix-shift to subscription.”
According to TipRanks.com, Bracelin is a 3-star analyst with an average return of 1.1% and a 56.5% success rate. Bracelin covers the Technology sector, focusing on stocks such as Cornerstone Ondemand, Riverbed Technology, and Tyler Technologies.
Currently, the analyst consensus on Teradata is Hold and the average price target is $26.67, representing a -2.3% downside.
In a report released today, Cowen & Co. also reiterated a Hold rating on the stock with a $29 price target.
Imperva (NYSE: IMPV)
“We remain neutral on shares; despite a reasonable valuation, tough comps loom for another six months. There is underlying evidence of progress. While 1Q16 saw weak EMEA results, 2Q16 saw changes in overall buying patterns and 3Q16 was marred by very difficult product compares, we note there is momentum in larger deals (over $100,000). Transactions larger than $100,000 grew 11% y/y in 3Q, but this is obfuscated as 2015 contained more million-dollar mega-deals than in the cumulative company history, resulting in product growth declining 26% y/y.”
According to TipRanks.com, Owens is a 5-star analyst with an average return of 16.0% and a 63.0% success rate. Owens covers the Technology sector, focusing on stocks such as Palo Alto Networks, Barracuda Networks, and SecureWorks Corp.
Currently, the analyst consensus on Imperva is Moderate Buy and the average price target is $47.42, representing a 19.7% upside.
In a report issued on November 4, Nomura Holdings also reiterated a Hold rating on the stock with a $37.50 price target.
Marvell (NASDAQ: MRVL)
In a report released yesterday, Michael McConnell from Pacific Crest reiterated a Hold rating on Marvell (NASDAQ: MRVL). The company’s shares opened today at $14.63, close to its 52-week high of $14.79.
“We view it an incremental positive on top of higher-than-expected gross margin in FQ3/FQ4. Marvell also announced a new $1 billion share buyback program with $500 million worth of shares to be repurchased over the next 12 months. Strong gross margin and prior announced opex reduction prompt higher estimates.”
According to TipRanks.com, McConnell is a 4-star analyst with an average return of 7.9% and a 65.6% success rate. McConnell covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Silicon Laboratories, and Skyworks Solutions.
Currently, the analyst consensus on Marvell is Hold and the average price target is $14.56, representing a -0.5% downside.
In a report issued on November 3, Oppenheimer also reiterated a Hold rating on the stock.