salesforce.com (CRM) Q2 Beat on Key Metrics - Nomura Securities

Nomura Securities analyst Rick Sherlund reiterated a Buy rating and $65 price target on salesforce.com (NYSE: CRM) following Q2 results which beat on key metrics.

Sherlund commented, "Revenue growth of 38% (we estimate 28% organic) was ahead of expectations of 35%. Billings growth of 33% (we estimate 28% organic) was above the Street estimate of 28%. Deferred revenues were up 31%, versus the Street at up 30%. Operating cash flow was $246mn, up 34%. We expect the closer relationship with Microsoft to get some press with both the marketing automation conference in mid-September and Dreamforce user group meeting in mid-October. We also expect the company to announce a new cloud service (we have expected an analytics cloud or some relationship cloud to leverage off of the recent RelateIQ acquisition) that can expand the TAM."

The firm raised FY15E EPS from $0.50 to $0.52; FY16E EPS from $0.67 to $0.71

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 $55.71 yesterday.

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