Goldman Sachs Adjusts Numbers on salesforce.com (CRM) After Buddy Media Deal; Still Core Growth Holding
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Price: $38.25 +0.08%
Rating Summary:
30 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
30 Buy, 4 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
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Goldman Sachs maintains a 'Buy' on salesforce.com (NYSE: CRM) price target of $190.00.
Analyst, Heather Bellini, commented on the recent acquisition of Buddy Media, saying, "Management stated that it still expects non-GAAP operating margin expansion in FY2013, but not by as much as the 75-100bp originally guided. For FY2013 CFO, the company expects a $5mn negative impact from the deal, with growth in the low 20%s as previously guided. Given these factors, we are raising our FY2013/FY2014 revenue estimates to $3.025bn/$3.935bn (from $3.000bn/$3.830bn) and lowering our non-GAAP EPS estimates to $1.49/$1.89 (from $1.62/$2.05). Further, we are lowering our FY2013 CFO forecast to $719mn, up 21% yoy, from $724mn."
Bellini sees CRM as a core growth holding and sees accelerated bookings growth into FY13. However, no comments were made about the speculation of a $140M deal.
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 $145.15 yesterday, with a 52 week range of $94.09-$164.75.
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Analyst, Heather Bellini, commented on the recent acquisition of Buddy Media, saying, "Management stated that it still expects non-GAAP operating margin expansion in FY2013, but not by as much as the 75-100bp originally guided. For FY2013 CFO, the company expects a $5mn negative impact from the deal, with growth in the low 20%s as previously guided. Given these factors, we are raising our FY2013/FY2014 revenue estimates to $3.025bn/$3.935bn (from $3.000bn/$3.830bn) and lowering our non-GAAP EPS estimates to $1.49/$1.89 (from $1.62/$2.05). Further, we are lowering our FY2013 CFO forecast to $719mn, up 21% yoy, from $724mn."
Bellini sees CRM as a core growth holding and sees accelerated bookings growth into FY13. However, no comments were made about the speculation of a $140M deal.
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 $145.15 yesterday, with a 52 week range of $94.09-$164.75.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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