DA Davidson on salesforce.com (CRM): 'we are hesitant to endorse the deal'
DA Davidson analyst Gil Luria reiterated an Underperform rating and $200.00 price target on salesforce.com (NYSE: CRM).
The analyst comments "This morning Salesforce announced it had reached an agreement to acquire Informatica (INFA - NEUTRAL) for $8B or $25 per share, net of its current investment in the company in cash (11% premium to INFA's Friday close). This is Salesforce's first headline M&A deal since the company acquired Slack in 2021 for $28B. While we see potential benefits from the addition of Informatica's data management capabilities, we are hesitant to endorse the deal given Informatica's suboptimal execution track record and legacy technology offerings. We are maintaining our UNDERPERFORM rating and $200 PT (18x FY26 EPS)."
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Shares of salesforce.com closed at $273.13 yesterday.