UBS Reiterates Buy Following a Strong 4Q by salesforce.com (CRM) - PT to $92

UBS maintained a Buy rating on salesforce.com (NYSE: CRM), and cut the price target to $92.00 (from $96.00), following the company's 4Q results and guidance. CRM reported revenues of $1,809M, beating the Street's $1,791M estimate. EPS was reported in-line at $0.19, but at the high end of company guidance ($0.18-0.19). UBS believes that CRM has attractive characteristics that can help the company sustain momentum.

Analyst Brent Thill commented, "CRM unveiled upbeat FQ4 results and FY17 guidance that could please different types of investors – whether focused on topline or cash flows. Strength was broad-based across pdts & geos, and mgmt. said "we're not seeing an economic impact." We don't think that means an "all-clear" for the software sector, but we do believe superior business models can help weather future storms. We believe CRM has attractive characteristics that can help sustain momentum: critical mass ($6Bn+ FY16 revs, and we expect annual run rate could pass $10Bn by F4Q18), predictable rev stream (93% of total from subs & support), healthy cash flow generation (FY16 CFFO $1.6Bn was 24% of revs), unique customer focused culture and rapid innovation (elevating CRM to a strategic partner level with clients), and disciplined execution (attrition rate <9% and clean delivery across segments). We continue to view CRM as one of the best large cap growth stories and a core holding for the new generation of Cloud-based software."

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

Shares of salesforce.com closed at $62.52 yesterday.

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