UPDATE: Goldman Sachs Initiates Informatica at Neutral on Execution Visibility

Goldman Sachs initiated coverage on Informatica INFA with a Neutral rating and a $28 price target. Goldman Sachs commented, "While we believe numbers have been appropriately reset following the 2Q and 3Q misses (we are at 1% yoy growth in 2012 versus 15% growth expected by consensus prior to June), we believe ongoing sales transition to new leadership will take time to impact numbers. We also see shares, now at 19X 2013E EPS and 18X EV/FCF, embedding a return to low-to-mid teens organic top-line growth that we believe is unlikely in the very near term. We would look for more evidence that growth execution is more sustainable before reconsidering our rating." Informatica closed at $27.42 on Thursday.