Deutsche Bank Ups Price Target on salesforce.com (CRM) to $100

Deutsche Bank raises its price target on salesforce.com (NYSE: CRM) from $85 to $100 while reiterating its Buy rating.

The firm said its higher price target reflects a FY10 unleveraged free cash flow estimate of $3.00 and EV/uFCF/G multiple of 1.1x, which represents a slight premium to its peer group "given leadership".

Deutsche believes salesforce.com will improve its positioning within the sales force automation industry through initiatives in its platform and scale. The firm said it sees strong stock outperformance from salesforce.com "as investors get increased visibility to the company's Force.com opportunity alongside solid performance to (and possibly beyond) expectations within SFA as the market remains open and ours and consensus estimates conservatively embed price compression and slowing growth."

With shares of salesforce.com closing at $70.21 yesterday, Deutsche's new price target represents a potential gain of 43% from current levels.

salesforce.com, inc. provides on-demand customer relationship management (CRM) services to businesses and industries worldwide.

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