Informatica: 35% Upside, 10% Downside According To Nomura

Informatica INFA shares were hit hard last week when 2014 guidance was cut from the range of $1.55 - $1.65 to $1.50 - $1.60.

Analysts at Nomura think the sell off is a buying opportunity. The research house raised its rating from Hold to Buy, but cut the price target from $48 to $41 (31.6 percent upside).

“We think the stock has valuation support and like the optionality for growth. Also, the value to a strategic buyer would suggest further upside to the share price,” wrote Nomura regarding catalysts for growth.

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The research report further stated that upside in the stock is 35 percent on just 10 percent downside, but “investors may need to be patient to get paid.”

Shares of Informatica were last trading 0.9 percent higher to $30.95.