08:20 AM EDT, 04/15/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

According to an unconfirmed WSJ report, CRM is in advanced talks to acquire Informatica (INFA 38 NR), with an offer price being discussed at levels below the current stock price (INFA's stock up over 35% YTD). We have mixed thoughts on a potential deal, as CRM has shifted away from M&A and focused on maximizing profitability via cost-cutting efforts and more aggressive buybacks. We think an INFA deal instead looks to change the narrative and places more emphasis on injecting growth to the top-line (albeit inorganic), with revenue recently decelerating to a 9%-11% pace. An INFA deal could further expand CRM's data management capabilities and potentially extend more AI offerings to customers. We believe a proposed deal could face regulatory scrutiny while INFA has similar gross/operating margins to CRM. Overall, the speculation of a deal does add uncertainty about strategic motives and could frustrate investors who saw CRM overpay for prior deals (e.g., Slack in 2021), weighing on shares near term.