Salesforce (CRM, Financial) has reached a definitive agreement to acquire Informatica (INFA) for $8 billion. The transaction will be financed through a mix of cash and newly issued debt, with an anticipated closure in early fiscal year 2027, pending regulatory approval.
Following the acquisition, Salesforce aims to integrate Informatica’s technology with its Agentforce platform. Additionally, Informatica’s Master Data Management services will be incorporated into Salesforce’s Data Cloud solution.
Despite these ambitious plans, RBC Capital expresses concerns that the acquisition might not be immediately favorable for investors. Informatica has recently faced execution challenges, and its current technologies are not yet integrated with Salesforce's existing assets. Additionally, there is uncertainty regarding how quickly the acquisition will contribute to Salesforce's margins and growth. Furthermore, some investors worry that Salesforce might be reverting to its strategy of large-scale mergers and acquisitions.
Nonetheless, RBC maintains an Outperform rating for Salesforce, setting the stock price target at $420.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 48 analysts, the average target price for Salesforce Inc (CRM, Financial) is $363.62 with a high estimate of $442.00 and a low estimate of $200.00. The average target implies an upside of 31.78% from the current price of $275.94. More detailed estimate data can be found on the Salesforce Inc (CRM) Forecast page.
Based on the consensus recommendation from 54 brokerage firms, Salesforce Inc's (CRM, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Salesforce Inc (CRM, Financial) in one year is $291.62, suggesting a upside of 5.68% from the current price of $275.94. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Salesforce Inc (CRM) Summary page.
