Informatica's (INFA) disappointing Q4 results have left more questions than answers as the company saw greater than anticipated churn, Deutsche Bank said in a note Friday.

"Management attributed the unforeseen churn to execution and operational failures which it believes are within its control to remediate," the report said.

"That said, it is common for execution issues in Software to get worse before improving, which we believe warrants our move to the sidelines."

Deutsche downgraded the stock to neutral from buy, saying that it could not predicate its investment thesis on a potential takeout despite its "very compelling asset value."

"We contend Informatica is a strategic asset and remind investors of credible reports 10 months ago of acquisition talks with Salesforce at levels ~2x where the stock is currently trading," the report said.

Informatica shares were falling about 31% in recent trading.

Price: 17.64, Change: -7.54, Percent Change: -29.94