Wedbush Sees Long-Term Catalysts for Informatica Corporation

In a report published Wednesday, Wedbush analyst Steve Koenig reiterated an Outperform rating and $37.00 price target on

. In the report, Wedbush noted, “We suspect INFA is on the cusp of a significant business model transition. As open source competitors make progress with subscription offerings, we think INFA needs to contemplate subscription pricing beyond just its cloud offering. We admit considerable uncertainty about whether and when INFA will announce any model transition, but a serious attempt by INFA to redo its pricing model could have a negative impact on near-term optics, but positive impact on long-term economics. Perhaps INFA might try a subscription pricing model targeted at data integration for SMBs; we believe data integration generates a little over 50% of INFA revenue, but this includes enterprise sales as well as SMB.” Informatica Corporation closed on Tuesday at $34.24.