UPDATE: Guggenheim Upgrades salesforce.com (CRM) to Neutral

Guggenheim analyst John DiFucci upgraded salesforce.com (NYSE: CRM) from Sell to Neutral with a price target of $150.00.

The analyst comments "We're upgrading CRM shares to NEUTRAL from SELL following a 20% decline since our 8/11 initiation, vs. the S&P 500 down 7% and IGV down 12%. We maintain our view that CRM's New ACV has been more modest than most investors realize, and it has relied on M&A to prop up rev growth, resulting in consistently near-zero FCF growth. We have viewed the $50B rev target in FY26 as risky and perhaps unattainable now following recently lowered FY23 rev guidance due to broad-based macro weakness. That is unless CRM continues its acquisition spree (which may be dilutive to shareholder value) or commits to material FCF improvements at the expense of lower, albeit acceptable, LT growth targets (closer to 10% than 20%). Our PT of $150 (unchanged) implies 5.1x EV/NTM Subs, near the intrinsic value of its recurring rev."

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 $153.53 yesterday.

You May Also Be Interested In

• JPMorgan Assumes salesforce.com (CRM) at Overweight, 'Overblown Concerns'
• Liberty Media Corp-Liberty Formula One (FWONA) PT Raised to $124 at Guggenheim
• Liberty Formula One (FWONK) PT Raised to $134 at Guggenheim