Guggenheim downgrades Informatica stock rating to Neutral following Salesforce acquisition news

Published 07/08/2025, 09:24
Guggenheim downgrades Informatica stock rating to Neutral following Salesforce acquisition news

Investing.com - Guggenheim downgraded Informatica (NYSE:INFA) stock rating from Buy to Neutral on Thursday, citing the pending acquisition by Salesforce (NYSE:CRM) as the primary reason for the rating change. The company, currently valued at $7.5 billion, has demonstrated strong financial health with a perfect Piotroski Score of 9, according to InvestingPro data.

The downgrade follows Informatica’s second-quarter 2025 results, which exceeded consensus expectations across all metrics, according to Guggenheim’s analysis.

Informatica did not host an earnings conference call to discuss the quarterly results and declined to provide financial guidance due to the pending transaction with Salesforce, which is expected to close in early fiscal year 2027 for Salesforce.

Guggenheim’s decision to downgrade reflects the acquisition price of $25 per share for Informatica stock, as stated in the firm’s research note.

Guggenheim’s previous price target for Informatica was $27 per share, slightly above the agreed acquisition price in the Salesforce deal.

In other recent news, Informatica has introduced new product enhancements at the Snowflake (NYSE:SNOW) Summit, focusing on expanding support for Apache Iceberg. This development includes new connectors and no-code development capabilities for Generative AI applications, aimed at simplifying use for data professionals. In a significant corporate move, Informatica has entered into a definitive agreement to be acquired by Salesforce for $25 per share, valuing the company at approximately $8 billion. This acquisition, expected to complete in early 2026, will be financed through a mix of Salesforce’s cash and new debt.

Following the acquisition announcement, RBC Capital Markets raised its price target for Informatica to $25, maintaining a Sector Perform rating. Similarly, JPMorgan adjusted its rating from Overweight to Neutral while also raising its price target to $25. Wolfe Research downgraded Informatica from Outperform to Peer Perform, citing the acquisition’s reflection in the current stock price and limited potential for further appreciation. These developments highlight the ongoing strategic shifts and financial assessments surrounding Informatica’s future.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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