JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, Raymond (NSE:RYMD) James reaffirmed its Strong Buy rating and $375.00 price target for Salesforce.com (NYSE:CRM) shares. Brian Peterson, an analyst at Raymond James, provided insights following Salesforce’s announcement that it had entered into a definitive agreement to acquire Informatica, an enterprise cloud data management platform, for approximately $8 billion. According to InvestingPro data, Informatica currently commands a market capitalization of $6.8 billion and boasts impressive gross profit margins of 80.5%.
Salesforce disclosed the acquisition of Informatica (NASDAQ:INFA) at $25.00 per share, a transaction that has already secured the approval of shareholders with 63% of Informatica’s voting power. The deal, which is expected to be financed through available cash and new debt, is anticipated to close at the beginning of Salesforce’s FY27 fiscal year in February. Informatica’s strong financial position is evidenced by its current ratio of 1.92, indicating healthy liquidity to meet short-term obligations.
Peterson highlighted the strategic and financial benefits of the acquisition for Salesforce, noting that the addition of Informatica would enhance Salesforce’s data management capabilities and align with customer needs for data accuracy and integrity. The deal is expected to be accretive to Salesforce’s non-GAAP operating margin, EPS, and free cash flow (FCF) by the second year post-closing. InvestingPro analysis reveals that Informatica has achieved a perfect Piotroski Score of 9, indicating strong financial health. For deeper insights into Informatica’s financials and 14 additional ProTips, subscribers can access the comprehensive Pro Research Report.
Informatica’s robust subscription growth and operating margin profile, which are in line with Salesforce’s performance, are seen as positive indicators. Peterson pointed out that there are significant opportunities for cross-selling and cost synergies, with management projecting accretive impacts to non-GAAP profitability metrics in FY28.
The analyst acknowledged that investors might have reservations about Salesforce engaging in large-scale mergers and acquisitions, but emphasized the potential synergies and the financial strength of Informatica as factors that mitigate such concerns.
In other recent news, Salesforce has announced plans to acquire Informatica, a data-management software company, in a deal valued at approximately $8 billion. This acquisition is expected to enhance Salesforce’s AI strategy and is anticipated to close in early 2026. Informatica shareholders will receive about $25 per share, and the deal is seen as a strategic move by Wedbush Securities, which maintains an Outperform rating on Salesforce with a $425 price target. Informatica, which serves over 5,000 customers, including a significant portion of the Fortune 100, has also been active in enhancing its AI-driven data management capabilities. The company has introduced new strategies for its AI platform and expanded partnerships with major tech companies like Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN).
Informatica recently unveiled a Data Quality Native Application for Microsoft Fabric and announced Master Data Management Extensions for the same platform. These enhancements aim to improve data management and integration within Microsoft environments. Meanwhile, Informatica has also advanced its AI capabilities through a partnership with Amazon, launching AI agent recipes and a connector for Amazon SageMaker Lakehouse. These developments coincide with Informatica obtaining the Amazon Generative AI Competency, highlighting its expertise in AI technologies. RBC Capital Markets has raised its price target for Informatica to $22, reflecting the company’s fundamental strengths and market position, despite ongoing speculation about the Salesforce acquisition.
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