UPDATE: Bank of America Downgrades Informatica to Underperform Following Negative Pre-Announcement
Bank of America reduced its rating on Informatica Corporation (NASDAQ: INFA) to Underperform and reduced its price objective from $55 to 32.
In the report, Bank of America noted, "Informatica pre-announced Q2 which missed guidance by a wide margin. License rev fell short of our est by 27%, total rev by 13%, and pf EPS by 24%. The stock was down by 29% after market. Although EU macro was one of the factors, we think the magnitude of the miss combined with lower guidance for 2H:FY12 indicate more of company specific sales execution problems, potential structural issues in the data integration market, and increasing competitive pressure. We are downgrading INFA to Underperform with a new PO of $32 (from $55), based on 20x CY13e EPS, which implies 15x EV/FCF, with both multiples in line with mid cap comps."
Informatica Corporation closed at $43.37 on Thursday, and in pre-market trading was trading down over 30 percent at $30.10 at the time of posting.
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