Oppenheimer Reiterates Outperform on salesforce.com (CRM) Following 2Q Report
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Oppenheimer reiterated an Outperform rating and $95.00 price target on salesforce.com (NYSE: CRM) following the company's 2Q earnings report. CRM reported total revenue of $2.036B was ~$16M above the consensus. EPS of $0.24 was $0.02 above consensus. Total revenue guidance is $2.11-2.12B and compares to the $2.12B consensus. PF EPS guidance is $0.20-0.21, which is below the $0.24 consensus.
Analyst Brian Schwartz commented, "Salesforce.com's F2Q results show signs of deceleration across most financial metrics driven by negative currency movements and soft July US performance, which will weigh on the growth story. We don’t think F2Q results are a harbinger of bad things to come for salesforce.com because in our view most of the issues were unique to F2Q and are likely transitory (Street uncalibrated for volatile FX, possible large M&A distractions). Bottom Line: We think salesforce.com is heading to a stronger position for share gains and monetization activity on its large installed base from several new products cycle (Commerce, Analytics, IoT, Verticals) and upcoming Dreamforce conference that should lead to a rebound in reported results next quarter, and there is valuation support in after-hours pricing (~25x 2017E EV/FCF for our 25%+ CAGR for FY:2017-2019 cash flow and EPS)."
Shares of salesforce.com closed at $79.42 yesterday.
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