Analyst William Power of Robert W. Baird maintained a Hold rating on Informatica (INFA – Research Report), with a price target of $19.00.
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William Power has given his Hold rating due to a combination of factors surrounding Informatica’s current market position and future prospects. While the company has shown promising innovation with its Agentic AI announcements and expanded partnerships with major tech players, these developments are not expected to immediately impact revenue. The company is perceived as a ‘show-me’ story over the next few quarters, with a need for clearer indications of stable Cloud ARR growth that could lead to a reacceleration in total revenue growth.
Despite management’s confidence in achieving a significant increase in cloud net new ARR in the latter half of the year, there remains potential risk associated with this expectation. The stock’s target price is set at $19, based on a valuation lower than its peers due to its weaker growth profile and lower visibility, despite having solid margins. Additional risks include execution challenges, competitive pressures, private equity ownership, and foreign exchange impacts, leading to a higher risk suitability rating.
According to TipRanks, Power is a 5-star analyst with an average return of 16.3% and a 55.69% success rate. Power covers the Technology sector, focusing on stocks such as Snowflake, DocuSign, and Apple.
In another report released yesterday, UBS also maintained a Hold rating on the stock with a $21.00 price target.