Informatica (INFA) Rating in Focus After $8 Billion Salesforce Deal

We recently published a list of 10 AI Stocks on Analyst’s Radar Today. In this article, we are going to take a look at where Informatica Inc. (NYSE:INFA) stands against other AI stocks that are on analyst’s radar today.

On May 27, RBC Capital’s analyst Matthew Hedberg maintained their “Sector Perform” rating on Informatica Inc. (NYSE:INFA) and raised its price target to $22.00 from the previous target of $19.00. Informatica is a leader in enterprise AI-powered cloud data management.

Analyst Matthew Hedberg cited Friday’s Bloomberg report of takeover interest by Salesforce (CRM), noting that Informatica could be an attractive asset given key fundamental drivers. This includes the ongoing growth in data, the ongoing cloud mix-shift, and potential GenAI tailwinds.

Informatica (INFA) Rating in Focus After $8 Billion Salesforce Deal

A business executive in a modern office looking over reports detailing artificial intelligence.

The very same day, the news of Salesforce and Informatica agreeing for the former to acquire the latter for approximately $8 billion in equity value was confirmed on the respective companies’ newsrooms. The acquisition is expected to boost Salesforce’s artificial intelligence capabilities and give access to Informatica’s data management tools.

“Together, Salesforce and Informatica will create the most complete, agent-ready data platform in the industry. By uniting the power of Data Cloud, MuleSoft, and Tableau with Informatica’s industry-leading, advanced data management capabilities, we will enable autonomous agents to deliver smarter, safer, and more scalable outcomes for every company, and significantly strengthen our position in the $150 billion-plus enterprise data market.”

-Marc Benioff, Chair and CEO of Salesforce.

Overall, INFA ranks 10th on our list of AI stocks that are on analyst’s radar today. While we acknowledge the potential of INFA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INFA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.