Scotiabank starts Informatica at Sector Perform, long-term target is ‘a stretch’

As previously reported, Scotiabank analyst Patrick Colville initiated coverage of Informatica with a Sector Perform rating and $15 price target. The company is transforming into a SaaS software vendor to capture growing cloud spend, but competition is increasing while Informatica is losing market share, the analyst tells investors in a research note. Colville adds that while he sees upside to consensus FY23 operating margin estimates, the management’s long-term profitability target for Informatica "looks like a stretch".