(CRM): Growth Not Reliant On Acquisitions - Cowen

November 29, 2016 6:32 AM EST
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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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Cowen analyst, Derrick Wood, reiterated his Outperform rating on shares of (NYSE: CRM) after the share price retrenched after its beat/raise quarter. The EV/Sales valuation has returned to the ~5x trough.

The analyst thinks that the main for the overhang is Benioff's comment that he wants to double the co. in 3-4 yrs, leading many to interpret that to mean M&A dilution/disruption risk remains elevated. The analyst doesn't agree and believes CRM can reach a $15 bln revenue run rate by CY19, and be in a position to generate ~$17 bln in revenue in CY20. This compares to a forecast of $8.375 bln in CY16.

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 $72.93 yesterday.

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