Informatica (INFA) posted breakeven results for the first quarter on 12% lower revenue. Wachovia upgraded its investment rating on the shares to buy from market perform.
Analyst Jason Maynard told Standard & Poor's MarketScope the upgrade was due to several factors. He cited the company's ability to execute in a difficult environment; its leadership position in the data integration market; the potential for upside in its analytical applications business; and the stock's current discount valuation vs. Informatica's peers. He notes that the company achieved its goal of a breakeven first quarter. The analyst adds, however, that the company has moderately cut its guidance for the remainder of 2002 due to weakness in Europe that's affecting the software sector. Therefore, Maynard cut his $225 million 2002 revenue estimate to $207 million, and his $0.08 EPS forecast to $0.03. He has an $11 12-month price target on the shares.