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UPDATE: Credit Suisse Upgrades Informatica


In a report published Wednesday, Credit Suisse analyst Michael Nemeroff upgraded Informatica (NASDAQ: INFA) to Outperform from Neutral, raising its price target to $52.00 from $41.00.

According to the report, it is believed INFA's business turned a corner in 2013 over a challenging 2012, and its results should continue to improve over the next 3-4 quarters because the company could be a share gainer in an accelerating data integration market, driving organic software growth above consensus in 2014 (+12.6% yr/yr).

“DC recently published their 2013-2017 DI industry forecasts that call for +9.1% and +10.5% growth in 2014 / 2015 versus +7.4% in 2013, a potentially meaningful acceleration, in our view (See Exhibit 1 & Exhibit 2),” the report noted. “As INFA's internal execution issues continue to abate, evidenced in its strong results over the last 2-3 qtrs, we anticipate that INFA could once again be a share gainer in DI, and accelerate its organic license growth above +10% in 2014 for the first time in a few years; annual organic license revenue growth above +10% (over a normal 2013 comp) could cause more growth investors to revisit the name after abandoning it when growth decelerated in 2012.”

INFA closed Wednesday at $42.55.

Posted-In: Analyst Color Upgrades Price Target Analyst Ratings


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