FBR Capital Remains Bullish on salesforce.com (CRM) Following Recent Checks

FBR Capital reiterates an Outperform rating and $82.00 price target on salesforce.com (NYSE: CRM) following recent checks. Analyst Samad Samana says that the checks show CRM has stronger momentum in Europe than in the U.S.

Samana commented, "Our recent conversations with several European partners and customers lead us to believe that salesforce.com's business momentum is even stronger in Europe than in the U.S. and that the performance in EMEA could drive upside to current estimates. While many items came up in our discussions, we found the following to be recurring themes: (1) plenty of new business is up for grabs, (2) demand for Marketing Cloud is increasing in EMEA, and (3) partners are rapidly expanding their salesforce.comfocused practices. EMEA represents just under 20% of salesforce.com’s revenue, and the ~$1 billion annual revenue run-rate is only a fraction of Oracle's and SAP’s application revenue in the region. We believe salesforce.com has only scratched the surface of its revenue opportunity in EMEA, and our recent checks suggest the company is experiencing healthy demand, executing well, and taking market share from its rivals. We reiterate our Outperform rating and our $82 price target, which represents a 7x EV/revenue multiple using our CY16 estimate."

For an analyst ratings summary and ratings history on salesforce.com click here. For more ratings news on salesforce.com click here.

Shares of salesforce.com closed at $71.14 yesterday.

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