Nomura is going contrarian on Informatica (INFA +1.7%), upgrading shares to Buy after they were crushed on Friday in response to the company's light Q3/2014 guidance. The firm cites a more favorable valuation.
Informatica was hit with 3 downgrades post-earnings. Credit Suisse (downgrade to Neutral) cited the guidance, a CFO transition - current CFO Earl Fry plans to retire by year's end - and CC remarks (transcript) about fewer large deals in certain verticals, especially financial services.
When asked about deal sizes, management insisted competition isn't an issue, and declared adoption of the Hadoop big data framework (seen as a threat to traditional data warehousing solutions) to be an opportunity rather than a threat. Credit Suisse thinks the deal size pressure could point to weaker demand for infrastructure software purchases amid rising cloud spending.