Jefferies Remains Positive on (CRM), Market Chekcs Indicate Strong Signs

November 15, 2011 7:54 AM EST
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Jefferies is reaffirming its Buy rating and $156 price target on shares of (NYSE: CRM) ahead of the release of its third quarter results.

The firm reports, market checks are indicating solid business performance with large deal activity remaining strong. Jefferies believes enterprise customers are continuing to grow due to the expansion of their product portfolio.

If there is a down side for the quarter, the firm notes it maybe in the SMB segment as Microsoft (Nasdaq: MSFT) has been increasing its market share in that segment.

An analyst at Jefferies comments, "We heard of large deal activity, which we believe reflects bigger commitments by large customers as the product portfolio continues to expand. We think SFA has led deals in the past, but we are now hearing of more deals that include broader use of products within the portfolio, especially Service,, and Chatter."

For the quarter, the firm estimates earnings of $0.31 per share and $1.30 for the full year of 2012. Jefferies has also cut its 2013 EPS estimate from $1.91 to $1.71 and established its 2014 estimate at $2.44. Revenue for fiscal 2012, 2013, and 2014 is forecasted to be $2.226 billion, $2.858 billion, and $3.647 billion.

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Shares of closed at $133.52 yesterday.

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