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- Goldman Sachs upgraded enterprise software provider Informatica (NYSE:INFA) from a Neutral rating to Buy and raised its price target from $26 to $44.
- Brokerage's PT represents a premium of nearly 30% to INFA's last close.
- The investment firm noted that its previous concerns over INFA's less than durable cloud annual recurring revenue [ARR] had been eased as INFA's concerted pivot to a cloud-only selling motion and effective migration tooling provide it with the opportunity to sustain strong NNARR in cloud together with tailwinds from DX and generative AI.
- Goldman Sachs is of the opinion that appreciable upside to cloud ARR expectations can deliver revenue/ARR above market expectations.
- INFA reported fourth-quarter results on Wednesday, with Q4 adj. EPS of $0.32 beating expectations by $0.02, and revenue of $445.2 million beating estimates by 13.14 million.