FBR Capital Maintains a 'Market Perform' on salesforce.com (CRM); Radian6 Acquisition Raises Value Proposition for Customers
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Price: $274.85 -0.66%
Rating Summary:
45 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Rating Summary:
45 Buy, 19 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
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FBR Capital maintains a 'Market Perform' on salesforce.com (NYSE: CRM), PT $155.
FBR analyst says, "We think the acquisition of Radian6 is a good strategic move as it extends the value of Salesforce.com’s existing offerings (Sales Cloud, Service Cloud, Chatter, Force.com platform) by providing social media monitoring and engagement capabilities. Salesforce.com paid a fairly high multiple (4.7x EV/NTM revenues) to acquire an established vendor in the social media monitoring space. While the acquisition of Radian6 continues a trend of dilutive acquisitions, we think it strengthens the company’s existing offerings, particularly Service Cloud, Chatter, and Force.com."
"We are not making any changes to our F1Q12 (April) estimates since the Radian6 acquisition is not expected to close until early May. For FY12, we are raising our revenue estimate by $48 million to $2.14 billion and reducing our pro forma EPS estimate by $0.11 to $1.27. For FY13, we are raising our revenue estimate by roughly $130 million to $2.68 billion and our pro forma EPS estimate by $0.02 to $1.88."
For more ratings news on salesforce.com click here and for the rating history of salesforce.com click here.
Shares of salesforce.com closed at $134.49 yesterday.
FBR analyst says, "We think the acquisition of Radian6 is a good strategic move as it extends the value of Salesforce.com’s existing offerings (Sales Cloud, Service Cloud, Chatter, Force.com platform) by providing social media monitoring and engagement capabilities. Salesforce.com paid a fairly high multiple (4.7x EV/NTM revenues) to acquire an established vendor in the social media monitoring space. While the acquisition of Radian6 continues a trend of dilutive acquisitions, we think it strengthens the company’s existing offerings, particularly Service Cloud, Chatter, and Force.com."
"We are not making any changes to our F1Q12 (April) estimates since the Radian6 acquisition is not expected to close until early May. For FY12, we are raising our revenue estimate by $48 million to $2.14 billion and reducing our pro forma EPS estimate by $0.11 to $1.27. For FY13, we are raising our revenue estimate by roughly $130 million to $2.68 billion and our pro forma EPS estimate by $0.02 to $1.88."
For more ratings news on salesforce.com click here and for the rating history of salesforce.com click here.
Shares of salesforce.com closed at $134.49 yesterday.
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