Zendesk (ZEN) Lower on Salesforce (CRM) Offering - William Blair
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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.
Shares of Zendesk closed at $73.65 yesterday.
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