Needham & Company Starts salesforce.com (CRM) at Hold

Needham & Company initiates coverage on salesforce.com (NYSE: CRM) with a Hold rating.

Analyst Scott Berg commented, "We initiate coverage of Salesforce.com at Hold. We believe CRM is the epitome of what most SaaS companies strive to be: large, bold, and at the forefront of taking down legacy software vendors with an unmatched platform in software today. We believe CRM continues to have a tremendous growth opportunity in front of it, even at its current outsized revenue level of $8B+. CRM is armed with an innovative and leading platform in the Customer Management Ecosystem, a long growth tail, and a compelling play with the Big Data platform that customers crave to drive business performance; together, we think these can double revenues over the next 5-6 years. But decelerating organic revenue growth, a looming sales reorg, and an operating model not profitable enough at its revenue keep us on the sidelines at current valuation levels."

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 $80.92 yesterday.

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