(CRM): Twitter Deal Would Be "Costly And Risky"- Nomura

September 26, 2016 7:31 AM EDT
Get Alerts CRM Hot Sheet
Price: $75.80 -0.3%

Rating Summary:
    51 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 13
Trade CRM Now!
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.

Nomura Securities analyst, Frederick Grieb, reiterated his Buy rating on shares of (NYSE: CRM) after David Faber reported that Twitter (NASDAQ: TWTR) had received take-over interest from a number of companies including Salesforce.

The analyst believes that a deal could make sense considering that "customers are now more often interacting with service professionals through social media such as Twitter as well as being marketed to via social media, owning Twitter and its over 300mn users could provide Salesforce with the ability to integrate sales and marketing offerings with Twitter, allowing Salesforce’s users to better serve their customers".

However "the costs could out-weigh the benefits". "An acquisition of this magnitude would be transformative for Salesforce, however it is unclear if the superior integration with Salesforces’ service and marketing automation solutions would be worth the risk of distraction and potential value destruction that could be caused by an acquisition."

No change to the price target of $90.00.

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

Shares of closed at $70.39 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Mergers and Acquisitions

Related Entities

David Faber, Twitter, Nomura, Definitive Agreement

Add Your Comment