UPDATE: FBN Securities Initiates Informatica at Outperform on Products, Valuation

FBN Securities initiates coverage on Informatica

with an Outperform rating and a $45 price target. FBN Securities commented, "he company's ETL/data integration products are an integral part of the Big Data trend, and it has best-of-breed products in this segment. INFA believes that Big Data is the confluence of three technology trends: big transaction data, big interaction data, and big data processing. Unfortunately, the company is now experiencing weaker trends in Europe than many other technology companies, and it had not executed well in the US (leading to the departure of the company's prior head of sales; new head of sales John McGee joined in late July). However, this has led to a valuation more in line with its peers (versus the traditional premium). Plus, we believe that the company is addressing its sales execution issues and believe that they should mostly be resolved by the end of this year." Informatica closed at $34.18 on Wednesday.