Informatica pullback a buying opportunity, says BofA

After Informatica (INFA) announced that it is “currently” not having any conversations with any acquirers, ending media-fueled speculation about a potential deal with Salesforce (CRM), BofA noted that the company also pre-announced its Q1 key growth metrics are expected to be in the “upper-half” of their guidance range, which the analyst says could be a disappointment since those metrics have beaten guidance in 2023 thus far. However, the firm calls the subsequent pullback in shares a buying opportunity as it tells investors that neither the potential acquisition noise nor the soft pre-announce “changes our long-term positive investment thesis on Informatica at all.” The 2024 guidance was reiterated, which “implies that one of the fastest guides in software is still intact,” adds the firm, which would be buyers on the weakness and reiterates a Buy rating and $39 price target on Informatica shares.