UPDATE: Nomura Downgrades Informatica to Neutral on Less Compelling Risk/Reward

In a report published Friday, Nomura analyst Jonathan Hodgkinson downgraded the rating on Informatica Corporation INFA from Buy to Neutral, but reiterated the $40.00 price target. In the report, Hodgkinson noted, “The infrastructure software environment continues to be challenging with the ongoing mid-cycle slowdown in capital spending in the US and recession in Europe. With Informatica up 38% over the past six months (vs the S&P500 up 6%), the risk/reward is less compelling now, and while we see no evidence of soft demand going into the end of the March quarter, we see less incentive to be buyers at this point and move our rating to Neutral from Buy. The risk at this price may be that the progress in demonstrating upside to numbers in a seasonally weaker Q1 and tough macro environment is simply more uncertain.” Informatica Corporation closed on Thursday at $35.86.