Oppenheimer Raises Salesforce Price Target, Sees 16% Upside
Oppenheimer analyst Brian Schwartz reiterated an Outperform rating on Salesforce.com (NYSE:CRM) and raised his price target to $75 (from $71), which represents a potential upside of 16% from where the stock is currently trading.
Schwartz noted, “We recently interviewed 68 customers to assess subscriber trends and platform and marketing business conditions. Key takeaways: 1) There is some pent-up demand from customers waiting for the Salesforce1 platform maturity to match the single SaaS supplier messaging; 2) good leading indicators for enterprise subscriber additions, less optimistic for SMBs; 3) customers want contact centers, sales performance management, and eCommerce services; and 4) our confidence is increased in Marketing Cloud becoming a $1B+ business in 2016. Bottom Line: Our survey of 68 customers reveals a rising tide for salesforce.com’s solutions. We think CRM’s internal R&D and acquisition-driven product strategy is resonating with customers and puts CRM in a strong position to better monetize on its large base over the NTM.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Schwartz has a total average return of 11.4% and a 70.0% success rate. Schwartz has a 14.1% average return when recommending CRM, and is ranked #603 out of 3365 analysts.