RBC Capital Lifts Informatica (INFA) PT to $25, Keeps Sector Perform Rating

On Wednesday, RBC Capital Markets analyst Matthew Hedberg raised the price target for Informatica Inc. (NYSE:INFA) to $25 from $22, while maintaining a Sector Perform rating.

This adjustment follows the announcement that Informatica has entered into a definitive agreement to be acquired by Salesforce (NYSE:CRM) for $25 per share. This acquisition values Informatica at ~$8 billion in equity, excluding Salesforce’s existing investment.

RBC Capital Lifts Informatica (INFA) PT to $25 on Acquisition by Salesforce

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Hedberg noted that the portfolios of Informatica and Salesforce are complementary, which suggests the merger is likely to proceed without significant regulatory scrutiny. Informatica maintains impressive gross profit margins of 80.54% and operates with a moderate level of debt, factors that likely attracted Salesforce’s interest.

The transaction is anticipated to be finalized in Salesforce’s FY2027, which corresponds to the calendar year 2026, pending the fulfillment of customary closing conditions, such as approval by Informatica shareholders. This acquisition will potentially enhance Salesforce’s product offerings by leveraging Informatica’s expertise in data integration software and services. Informatica Inc. (NYSE:INFA) develops an AI-powered platform that connects, manages, and unifies data across multi-vendor, multi-cloud, and hybrid systems at enterprise scale worldwide.

While we acknowledge the potential of INFA to grow, 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 the cheapest AI stock.

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