(CRM): Checks Point To Low Penetration - Wedbush

November 15, 2016 7:26 AM EST
Get Alerts CRM Hot Sheet
Price: $76.03 +0.61%

Rating Summary:
    51 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Wedbush analyst, Steve Koenig, reiterated his Outperform rating on shares of (NYSE: CRM) noting that Investor sentiment has grown more negative in the wake of the disappointing 2Q. Short interest of 2.9% is now at a 12-month high. The company’s $2.8B acquisition of Demandware and unsuccessful attempt to buy LinkedIn has also fueled concerns that it’s trying to cover up decelerating organic revenues.

The analyst's 3Q checks support the view that the company’s disappointing 2Q was a more due to deal-specific circumstances surrounding some of the larger opportunities than to a broad-based secular slowdown for the company, and that there will be a positive regression to the mean in 2H enterprise deal execution. Considering the negative sentiment surrounding CRM shares, the analyst believes this should be a catalyst for positive price action. We would be averaging into CRM shares at current levels, before and after the 3Q print.

No change to the price target of $96.

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

Shares of closed at $72.76 yesterday.

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