Leading CRM solutions provider Salesforce (NYSE:CRM) is in talks to acquire Informatica (NYSE:INFA), a data-management software provider, the Wall Street Journal reported. INFA stock has risen over 139% in one year and has a market cap of over $11.3 billion.
While the move will likely expand CRM’s data management capabilities, one possible hurdle for the deal could be the acquisition price offered by Salesforce. Notably, the report highlighted that Salesforce’s acquisition offer amounts to less than Informatica’s closing price of $38.48 on Friday, April 12. As a result, there’s a possibility that INFA’s shareholders may refuse the offer. As a result, there’s a possibility that INFA’s shareholders may refuse the offer.
It remains to be seen how the deal develops.
CRM’s Key Acquisitions
Meanwhile, Salesforce has been aggressively expanding its solution ecosystem and strengthening its artificial intelligence (AI) capabilities, both organically and through acquisitions.
The company acquired Troops.ai, a revenue communications solution provider, in July 2022. In April 2022, Salesforce acquired Phennecs, which offered privacy, compliance, and data management solutions.
While CRM has acquired multiple companies, the acquisitions of Slack Technologies and Tableau Software are among the most prominent ones.
Analyst Upbeat on INFA Acquisition
Jeffries analyst Brent Thill is upbeat about CRM’s potential acquisition of Informatica. Thill believes that this move will strengthen Salesforce’s data management capabilities, aligning well with its existing MuleSoft platform. Moreover, he expects that the acquisition will open up new growth avenues for Salesforce in both the data cloud and AI sectors.
Thill has a Buy rating on CRM stock. His price target of $350 implies 18.92% upside potential from current levels.
Thill is bullish about CRM stock, and Brad Zelnick of Deutsche Bank is the most accurate analyst covering the stock in a one-year timeframe, according to TipRanks. Copying Zelnick’s trades on CRM stock and holding each position for one year could result in 85% of your transactions generating a profit, with an average return of 20.32% per trade.
Is CRM Stock a Good Buy Now?
CRM stock has gained nearly 50% in one year. Given this notable increase, analysts are cautiously optimistic about Salesforce stock.
CRM stock has 28 Buy and 10 Hold recommendations for a Moderate Buy consensus rating. Analysts’ average price target on CRM stock is $338.06, implying 14.86% upside potential from current levels.
