- Informatica's stock has fallen nearly 20% in 2014. The stock's decline has been driven by lower-than-expected revenue growth and EPS guidance.
- Although revenue growth has slowed, Informatica is still growing double-digits and has a dominate market position. Additionally, Informatica is dominate in markets which are expected to grow rapidly.
- Management reduced EPS guidance because of weakness in two key market verticals. Yet, the weakness in these market verticals is temporary in nature.
- These sectors will have to spend on core business and more importantly regulatory needs. Additionally, management has strengthen their sales effort to help increase revenue.
- With the recent 20% decline, Informatica's stock is trading at a more reasonable value. This combined with a solid market position makes Informatica a good buy.