Informatica (INFA) Downgraded After Salesforce Deal - Is the $8B Buyout Fully Priced In?

We recently published a list of 12 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Informatica Inc. (NYSE:INFA) stands against other AI stocks on latest news and ratings.

On May 28, Wolfe Research downgraded Informatica Inc. (NYSE:INFA) from “Outperform” to Peer Perform without a price target. Informatica is a leader in enterprise AI-powered cloud data management. The rating downgrade follows news that the company has entered into a definitive agreement to be acquired by Salesforce for $8B in equity value, or $25 per share.

According to the firm, the acquisition news is already reflected in Informatica’s current stock price, so there is limited upside potential for the stock. Even though the acquisition by Salesforce is a positive move for Informatica’s shareholders, its stock value will be negatively impacted if the acquisition fails to materialize.

This implies that the acquisition is a major factor in Informatica’s current market performance and investor expectations. As the acquisition date moves closer, investors will be closely watching the stock for any developments that could have an impact on the deal’s completion.

Overall, INFA ranks 12th on our list of AI stocks on latest news and ratings. While we acknowledge the potential of INFA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than INFA and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.