Informatica downgraded to Neutral at Goldman on slowing cloud transition

Goldman Sachs analyst Kash Rangan downgraded Informatica (INFA) to Neutral from Buy with a price target of $20, down from $38. The firm’s prior Buy thesis, “which did not play out,” had been based on Informatica successfully executing on its cloud transition, says the analyst, who argues based on Q4 results and guidance for FY25 that it has “become clear that the company’s cloud transition is slowing down.” The firm prefers to move to the sidelines until there are signs of stronger operational execution that can support an improvement in both top and bottom-line growth, the analyst tells investors.