Nomura Securities Maintains a 'Buy' on salesforce.com (CRM); 3Q Review

Nomura Securities maintains a 'Buy' on salesforce.com (NYSE: CRM) price target of $155.00.

Nomura analyst, Rick Sherlund, said, "Salesforce.com reported a mixed quarter, beating the Street on revenues and earnings and initiating FY13 guidance 4% ahead of Street estimates, but missing 3Q billings expectations (the most important metric for investors) by 3%. Management expects a reversal of this billings wobble and guided to an above-consensus billings number in Q4 on the back of a robust pipeline. We are lowering our 4Q12 revenue estimate by 4%, and now expect 39% growth y/y versus 44% growth previously. This lowers our FY2012 revenue growth rate by 1% to 37%. Our 2012E EPS goes from $1.31 to $1.32, 2013E from $1.80 to $1.71 and 2014E from $2.58 to $2.40...The stock is trading at 34x EV to unlevered cash flow, an unforgiving multiple but we think it still has robust growth potential."

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 $126.09 yesterday.

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