Needham & Company Maintains a 'Buy' on salesforce.com (CRM); Extremely Solid, Not Even Counting the 9-Figure Elephant In the Room
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Price: $196.21 -2.56%
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
48 Buy, 20 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Buy' on salesforce.com (NYSE: CRM) price target raised from $139 to $160.
Analyst, Michael Huang, said, "Billings growth was extremely impressive (up 57% y/y vs. up 29% y/y growth), negating the numerous skeptic concerns over the direction of trends (i.e., European exposure, competitive pricing pressure, limited SFA market opportunity, etc.). Billings growth benefited from an increased focus/emphasis on annual billings (vs. shorter terms), which added 12 points to growth, but doesn’t even remotely call into question the strength of trends. Organic growth (netting out any contribution from 11 acquisitions over the past couple of years) was over 30%...Given the magnitude of the outperformance coupled with the 9 figure deal already signed in Q1 and the numerous tailwinds we see ahead (rising strategic importance of Social Enterprise, SaaS secular trend, product cycles, distribution growth, etc.) we wouldn’t be surprised to see notable CRM multiple expansion in the nearer term."
Needham raises FY12 EPS estimate from $1.32 to $1.36, but lowers FY13 from $1.70 to $1.63.
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 $131.77 yesterday.
Analyst, Michael Huang, said, "Billings growth was extremely impressive (up 57% y/y vs. up 29% y/y growth), negating the numerous skeptic concerns over the direction of trends (i.e., European exposure, competitive pricing pressure, limited SFA market opportunity, etc.). Billings growth benefited from an increased focus/emphasis on annual billings (vs. shorter terms), which added 12 points to growth, but doesn’t even remotely call into question the strength of trends. Organic growth (netting out any contribution from 11 acquisitions over the past couple of years) was over 30%...Given the magnitude of the outperformance coupled with the 9 figure deal already signed in Q1 and the numerous tailwinds we see ahead (rising strategic importance of Social Enterprise, SaaS secular trend, product cycles, distribution growth, etc.) we wouldn’t be surprised to see notable CRM multiple expansion in the nearer term."
Needham raises FY12 EPS estimate from $1.32 to $1.36, but lowers FY13 from $1.70 to $1.63.
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 $131.77 yesterday.
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