BTIG Boosts PT on salesforce (CRM) to $100; Q1 Boosted by Strong Cloud Results
BTIG lifts its price target on Buy-rated salesforce.com (NYSE: CRM) from $88 to $100 following Q1 results reported Wednesday night.
Analyst Joel Fishbien noted that salesforce continues to be a leader in cloud applications. The quarter was highlighted by acceleration in the core Sales Cloud (up +15% y/y), another 9 figure deal win (the third in the company’s history) and margin expansion. The Sales Cloud continues to see strong growth across all market segments and posted the largest y/y growth in five quarters. The Marketing Cloud also grew +29% y/y which drove further top line expansion and the new Wave analytics cloud is beginning to see positive momentum with enterprise customers. Management noted a record number of first quarter deals were closed which drove the off balance sheet backlog up +27% y/y,
the analyst noted.
Fishbien continued, In addition to top line expansion, the company also continues to execute well as margins expanded +283 bps y/y – which was the eighth consecutive quarter of growth. Overall, Salesforce.com continues to demonstrate a rare combination of outsized top-line growth and bottomline leverage. We continue to believe it is a must own software stock and raise our estimates and price target to $100.
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