In a report released today, William Power from Robert W. Baird downgraded Informatica (INFA – Research Report) to a Hold, with a price target of $19.00.
William Power has given his Hold rating due to a combination of factors impacting Informatica’s recent financial performance and future outlook. The company reported weaker-than-expected fourth-quarter results, primarily due to challenges in both on-premise and cloud renewals, which have led to higher churn rates. These issues have adversely influenced the company’s revenue and profitability projections for 2025, particularly affecting cloud ARR growth, a crucial element of previous positive expectations.
Despite the stock appearing potentially attractive after a drop in value, Power cites reduced visibility and confidence in the company’s future performance as reasons for the Hold rating. He notes that the multiple moving components within the company’s operations make it difficult to predict accelerated growth. Additionally, the company’s lowered guidance for both Q1 and the full year 2025, along with a deceleration in cloud subscription growth, further supports the decision to downgrade the rating to Neutral.
In another report released today, RBC Capital also downgraded the stock to a Hold with a $19.00 price target.