1237 ET - Salesforce's $8 billion deal for Informatica may bring some benefits but there's still reason to be hesitant, D.A. Davidson's Gil Luria and Clark Wright say in a research note. The analysts, who maintain their underperform rating, say part of the reason for their prior downgrade was their view that Salesforce would start covering up its slowing organic growth with acquisitions, which they say will be on further display Wednesday when Salesforces issues its results. "While the acquisition may become financially accretive in year 2," say Luria and Wright, "we do not believe that buying a legacy technology company that has lost its own growth does not change Salesforce as a company losing its own organic growth." Shares rise 1.3% to $276.77. (denny.jacob@wsj.com; @pennedbyden)
(END) Dow Jones Newswires
May 27, 2025 12:37 ET (16:37 GMT)
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