Surge in salesforce (CRM) an 'Overreaction', Jefferies Says

Jefferies analysts DiFucci and Zelnick view yesterday's surge in salesforce.com (NYSE: CRM) on takeover reports as an "overreaction."

The analysts commented, "We believe CRM shares +12% yesterday is an overreaction to Bloomberg headlines indicating the company is fielding takeover offers. While we appreciate the possibility of a sale, we believe the probability is very low, especially with the stock already trading at an inflated valuation. Strategically, we see MSFT being the most likely suitor, with ORCL, IBM, and GOOG in the mix. We remain Underperform while respecting the possibility of a black swan acquisition."

The firm maintained an Underperform rating and price target of $49 on CRM.

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 $74.65 yesterday.

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