UPDATE: Loop Capital Upgrades salesforce.com (CRM) to Hold
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Loop Capital analyst Yun Kim upgraded salesforce.com (NYSE: CRM) from Sell to Hold with a price target of $225.00 (from $150.00).
The analyst comments "We are upgrading CRM shares from Sell to Hold rating based on the following key reasons: 1) current FY22 estimates have been de-risked (current 17% organic revenue growth estimate vs. its previous annual organic revenue growth target of 20%); 2) checks indicate a modest rebound in its core business driven by increasing mid-sized deal activity and continued strength in its Tableau and Mulesoft businesses; and 3) shares already fairly reflect risks related to WORK (Not Rated) acquisition. Note that our previous Sell rating was primarily based on our checks that indicated that large enterprise standardization deals were slowing for the company, which we believe increased risk to achieving 20%+ organic revenue growth even after the IT spending returns to normal level from COVID-impacted 2020 level. While our recent checks continue to indicate that large enterprise deal activity remains pressured, we believe the current implied 17% organic revenue growth estimate for the year fairly captures this risk. Our updated $225 PT reflects higher cash flows over the next five years from the pending WORK acquisition."
Shares of salesforce.com closed at $225.77 yesterday.
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