Close

'Thesis has changed': Salesforce (CRM) stock selloff extends on analyst downgrade

December 2, 2022 9:28 AM EST
Get Alerts CRM Hot Sheet
Price: $165.61 +0.66%

Rating Summary:
    45 Buy, 17 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 24 | New: 19
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

Shares of Salesforce (NYSE: CRM) are set to open lower Friday after Wolfe Research analyst Alex Zukin downgraded to Peer Perform from Outperform following yesterday’s results.

The analyst saw thesis-changing results as they showed growth is “materially decelerating following a Covid pull-forward, execution missteps, and M&A misfires creating meaningful idiosyncratic headwinds.”

“With growth materially decelerating to implied LSD bookings growth in 4Q, new bookings this year declining 53%, and a high single digit top line growth estimate for next year with low teens FCF growth, that thesis has changed,” Zukin wrote in a client note.

The analyst opted to go to the sidelines after 10 years of having a Buy-equivalent rating on CRM stock. The analyst added that Salesforce is entering “a new and difficult chapter.”

Zukin removed the $160 per share price target on Salesforce and believes shares are fairly valued at $115-135.

Salesforce shares closed at $147.00, down over 8.2% on the day.

By Senad Karaahmetovic



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Downgrades, Hot Comments, Hot Downgrades, Hot List

Related Entities

Senad Karaahmetovic