Salesforce's (CRM) proposed $8 billion acquisition of Informatica (INFA) creates deal risk because many of its previous acquisitions have yet to be integrated, RBC Capital Markets said in a note Thursday.
The firm noted the "mixed track record" of Salesforce's more recent acquisitions of MuleSoft, Tableau and Slack, with no full integration.
RBC questioned the need to own Informatica, especially because it has integrations with Salesforce, including Agentforce.
"Finally, while Informatica is cheaper today than a year ago, it has also faced major execution challenges," the firm said.
RBC downgraded Salesforce to sector perform from outperform and cut its price target to $275 from $420.
The company's shares fell 6% in recent trading.
Price: 259.85, Change: -16.18, Percent Change: -5.86
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