(CRM): Customer Survey Shows Optimistic Spending Trend - Oppenheimer

October 26, 2016 9:30 AM EDT
Get Alerts CRM Hot Sheet
Price: $71.17 -0.96%

Rating Summary:
    51 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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Oppenheimer analyst, Brian Schwarz, reiterated his Outperform rating on shares of (NYSE: CRM) after conducing a customer survey that showed optimism. Since 2012, the analyst has interviewed customers during Dreamforce week.

This year’s survey points to a more optimistic near-term customer spending environment than indicated in the 2015-2012 surveys. The analyst believes the noticeable increase in the survey trend-lines suggests few constraints are ahead for healthy installed-base spending trends for, which bodes well for a rebound in CRM’s business activity and F3Q results, including a potential reacceleration in quarterly billings growth; these are near-term stock catalysts given that improving business trends are not current Street expectations. Despite this positive datapoint, negative currency remains a headwind for quarterly results, and the survey sheds no light on new customer demand which accounts for ~40% of the business.

No change to the price target of $95.00

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

Shares of closed at $75.06 yesterday.

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