Cantor Fitzgerald analyst Thomas Blakey lowered the price target on Informatica (NYSE: INFA) to $18.00 (from $29.00) while maintaining a Neutral rating.

The analyst commented, “Management saw a re-acceleration of cloud modernization deals this Q, and the modernization deals was significantly higher than expected. Modernization deals were over one third of new cloud bookings in Q4 compared to the mid-20s in prior quarters resulting in lower net new ARR (accounting).”

Also, “Revenue was further impacted by greater than forecasted reduction in renewal term length for on prem self-managed contracts. This happening in Q2 causing mgmt to reduce revenue forecast at that time to reflect the trend, but in Q4 the average renewal term length continued to decline more than expected.”