Deutsche Bank Downgrades Informatica (INFA) to Hold; Concerns Are Lining Up

July 6, 2012 7:33 AM EDT Send to a Friend
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Price: $33.10 -0.66%

Rating Summary:
    11 Buy, 13 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 25 | New: 14
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Deutsche Bank downgraded Informatica (NASDAQ: INFA) from Buy to Hold with a price target of $35.00 (from $53.00).

Deutsche analyst said, "Downgrading based on key concerns: 1) Execution likely lags with a new unit head since in Europe (since last April), in financial services 9since last Nov), and slower ASP growth (inconsistent ASP growth since the last 3 quarters, after posting consistent double digit growth till 2Q11) 2) Potential share losses to large competition in the form of IBM (NYSE: IBM) (which integrated all recent acquisitions under single platform), and open-source at the low-end (largest competition has been growing 100% y/y for last couple of years) 3) Limited tailwinds from adoption of Big Data/Hadoop in enterprises."

Deutsche analyst lowers FY12 revenue/EPS by $50M/$0.19 and FY13 by $82M/$0.18.

For an analyst ratings summary and ratings history on Informatica click here. For more ratings news on Informatica click here.

Shares of Informatica closed at $43.37 yesterday.

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