BMO Capital Cuts Price Target on salesforce.com (CRM) to $86 Following 2Q Report
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BMO Capital maintained an Outperform rating on salesforce.com (NYSE: CRM), and cut the price target to $86.00 (from $98.00), following the company's 2Q earnings report. Revenue and EPS were ahead of consensus estimates. However, billings came in weaker than expected.
Analyst Keith Bachman commented, "As we noted in our earnings preview, we thought salesforce.com's upside this quarter would be less than historical trends and that there might be some disappointment in guidance. However, the billings results for the July quarter were weaker than we thought, at 15% y/y growth vs. our expectation of ~20% y/y growth. Further, billings guidance of about 12%-14% seems disappointing, though billings will have a lot of moving parts this quarter, including FX and Demandware. As such, we are lowering our estimates and our target price from $98 to $86."
Shares of salesforce.com closed at $79.42 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesBMO Capital, Earnings
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