Barclays Maintains an 'Overweight' on salesforce.com (CRM); Going Deep - Addressing Investors' Biggest Question
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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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Barclays maintains an 'Overweight' on salesforce.com (NYSE: CRM) price target of $169.00.
Barclays analyst, Raimo Lenschow, didn't seem as surprised as others on Wall Street regarding CRM strong Q2. He is leaving his price target at $169 and his FY13 EPS estimate at $1.69 (vs. Street consensus of $1.63). In his report, Lenschow made comments like 'Steady Progress' and 'Push to annual billing continues' and 'Simple growth story at the moment'. (FY14 EPS raised slightly from $2.09 to $2.12)
Addressing some investor questions, the Barclays analyst, said, "We think at the moment the story is fairly simple. The sales force automation (SFA) market now represents $1bn for CRM and continues growing since it is a quasi-industry standard. Service Cloud is now running at a $500m run rate, but given the strong product positioning and market size this should be at the $1bn rate soon as well. The marketing cloud and other initiatives are long-term growth options that receive the most investment from the company."
Lenschow concluded by saying shares should settle down (considering Q2 was relatively in-line...to elevated expectations) and the Dreamforce conference should be the next catalyst.
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 $146.77 yesterday.
Barclays analyst, Raimo Lenschow, didn't seem as surprised as others on Wall Street regarding CRM strong Q2. He is leaving his price target at $169 and his FY13 EPS estimate at $1.69 (vs. Street consensus of $1.63). In his report, Lenschow made comments like 'Steady Progress' and 'Push to annual billing continues' and 'Simple growth story at the moment'. (FY14 EPS raised slightly from $2.09 to $2.12)
Addressing some investor questions, the Barclays analyst, said, "We think at the moment the story is fairly simple. The sales force automation (SFA) market now represents $1bn for CRM and continues growing since it is a quasi-industry standard. Service Cloud is now running at a $500m run rate, but given the strong product positioning and market size this should be at the $1bn rate soon as well. The marketing cloud and other initiatives are long-term growth options that receive the most investment from the company."
Lenschow concluded by saying shares should settle down (considering Q2 was relatively in-line...to elevated expectations) and the Dreamforce conference should be the next catalyst.
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 $146.77 yesterday.
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