Nomura Securities Maintains a 'Buy' on salesforce.com (CRM); Strong Results, But Not as Lustrous as First Impression

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

Analyst, Rick Sherlund, said, "Following the release of the company’s 4Q results, Salesforce’s stock was trading up 10% after hours. This move reflected the market’s excitement regarding the company’s substantial billings beat (4Q billings came in+57% y/y, or 19% above consensus expectations). Much of the upside in reported billings was from a change in billing terms. Adjusting for these, the 4Q billings were up 35%, still a strong showing, but more within the range of recent expectations. The market did not likely comprehend this benefit to billings in the early after-hours trading. We expect the stock to trade up but more modestly than the stock’s initial reaction post the print. Our 2013E EPS goes from $1.71 to $1.65 and 2014E from $2.40 to $2.18."

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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