Jefferies analyst Brent Thill notes that recent media reports highlight Salesforce’s (CRM) interest in Informatica (INFA). The firm believes a hypothetical acquisition would complement MuleSoft and expand Salesforce’s data management capabilities. It would also unlock the Data Cloud and AI opportunity, says Jefferies. Given Informatica’s high 20s/low 30s margin profile, the firm expects little dilution to Salesforce’s margins. Informatica trades at 7-times NTM revenue. An offer around this valuation would be in line with other data and integration deals, Jefferies contends. The firm has a Buy rating on Salesforce with a price target of $350 on the shares.
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