Nomura Securities Maintains a 'Buy' on salesforce.com (CRM); Billings Miss, but FY’13 Guidance 4% Ahead of Consensus
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Price: $190.97 -2.67%
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Nomura Securities maintains a 'Buy' on salesforce.com (NYSE: CRM) price target of $155.00.
Nomura analyst, Rick Sherlund, said, "Salesforce’s reported 3Q’12 results this afternoon beating Street revenue estimates, but missing the more important billings expectation. The company also initiated FY’13 revenue guidance 4% above consensus expectations. Despite the solid FY’13 guide, the weak 3Q billings result has the stock down 10% after hours."
"Management has guided FY’12 total revenue to be between $2.255bn and $2.259bn, up about 36% y/y. This is slightly below our FY’12 revenue estimates of $2.29bn (38% yoy growth) but above consensus at $2.23bn (35% yoy growth). Additionally, management initiated FY’13 revenue guidance of $2.880bn to $2.920bn, 4% above consensus estimates of $2.79bn, at the mid-point. We see this as clearly a bullish signal from management, which could help alleviate some of the negative pressure on shares."
Nomura Estimates Currently Under Review
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 $131.76 yesterday.
Nomura analyst, Rick Sherlund, said, "Salesforce’s reported 3Q’12 results this afternoon beating Street revenue estimates, but missing the more important billings expectation. The company also initiated FY’13 revenue guidance 4% above consensus expectations. Despite the solid FY’13 guide, the weak 3Q billings result has the stock down 10% after hours."
"Management has guided FY’12 total revenue to be between $2.255bn and $2.259bn, up about 36% y/y. This is slightly below our FY’12 revenue estimates of $2.29bn (38% yoy growth) but above consensus at $2.23bn (35% yoy growth). Additionally, management initiated FY’13 revenue guidance of $2.880bn to $2.920bn, 4% above consensus estimates of $2.79bn, at the mid-point. We see this as clearly a bullish signal from management, which could help alleviate some of the negative pressure on shares."
Nomura Estimates Currently Under Review
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 $131.76 yesterday.
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