Oppenheimer analyst Brian Schwartz assigned a Buy rating to Salesforce.com (NYSE: CRM) today and set a price target of $152. The company’s shares closed yesterday at $126.88, close to its 52-week high of $131.
Schwartz commented:
“Salesforce.com’s business displayed another quarter of strong results and raised financials outlook in its F1Q (excluding Mulesoft). CRM’s reported results look unseasonal for a first quarter, and indicate the fundamental trends for salesforce.com remain solid and diminish MuleSoft deal concerns. Our assessment is supported by 1) record deal sizes in commercial and public sector; 2) 36% growth y/y in remaining transaction price (i.e., backlog); and 3) 370bps expansion y/y in operating margin. On balance, the MuleSoft integration expenses will lessen this year’s margin improvement trend and could cause disruption, while proving out the revenue and costs synergies. Bottom Line: Salesforce.com’s impressive F1Q results lend support to our view that the company is well positioned for growth and future share gains in enterprise software. Reiterate Outperform, raise target to $152 from $135.”
According to TipRanks.com, Schwartz is a top 25 analyst with an average return of 27.7% and a 79.4% success rate. Schwartz covers the Technology sector, focusing on stocks such as Ultimate Software, MiX Telematics, and Carbonite Inc.
Currently, the analyst consensus on Salesforce.com is Strong Buy and the average price target is $140.10, representing a 10.4% upside.
In a report issued on May 20, Merrill Lynch also reiterated a Buy rating on the stock with a $161 price target.
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Salesforce.com’s market cap is currently $92.6B and has a P/E ratio of 746.35. The company has a Price to Book ratio of 9.86.
Based on the recent corporate insider activity of 431 insiders, corporate insider sentiment is negative on the stock.
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salesforce.com, inc. is a customer relationship management company, which engages in the provision of enterprise software.
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