Zendesk (ZEN) Lower on Salesforce (CRM) Offering - William Blair

October 10, 2019 12:29 PM EDT
Get Alerts ZEN Hot Sheet
Price: $97.91 +1.06%

Rating Summary:
    21 Buy, 8 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 26 | Down: 14 | New: 72
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William Blair analyst Bhavan Suri notes today's weakness in Zendesk (NYSE: ZEN) is related to news that Salesforce (NYSE: CRM) announced Lightning Order Management, a solution that enables a connected B2C order experience from commerce to fulfillment to service.

"While there is some overlap between the two, the value proposition offered by Sunshine to many of Zendesk’s current and prospective customers will not change, in our view," Suri commented. "The new solution from Salesforce appears to be a deeper data integration between its own Commerce and Service Cloud offerings. In our view, not every company will want to standardize on Salesforce, and for existing Zendesk customers, we see little immediate impact as these customers are still likely to adopt Sunshine to enhance their agent experience since they are current Zendesk users."

The analyst reiterated an Outperform rating on ZEN.

For an analyst ratings summary and ratings history on Zendesk click here. For more ratings news on Zendesk click here.

Shares of Zendesk closed at $73.65 yesterday.

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