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salesforce.com (CRM) Reports Solid 3Q Across the Board; Needham & Company Raises Price Target to $90

November 19, 2015 8:17 AM EST
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Price: $301.38 --0%

Rating Summary:
    45 Buy, 19 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 12 | Down: 10 | New: 10
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Needham & Company reiterated a Buy rating on salesforce.com (NYSE: CRM), and raised the price target to $90.00 (from $85.00), following the company's 3Q earnings report. CRM reported solid results across the board. The quarter was highlighted by 21% billings growth, which suggests healthy fundamentals, the strength of Salesforce's competitive positioning, numerous growth levers, and strong secular trends. Management raised FY16 revenue guidance for Q2 by $33MM, and FY16 adjusted EPS by over $0.03.

Analyst Michael Huang commented, "Q3 was non-surprisingly solid across the board on the back of a record Dreamforce conference and highlighted by 21% billings growth, which suggests healthy fundamentals, the strength of Salesforce's competitive positioning, numerous growth levers, and strong secular trends. The call was end-to-end upbeat across the board and the big takeaway is likely that despite massive scale (estimating roughly $8B in revs in F17) and expanding margins, we believe Salesforce is not even close to scratching the surface on its market opportunity given deepening enterprise relationships, a broadening platform vision, and improving distribution and expanded partner ecosystem."

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 $77.35 yesterday.



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