Piper Jaffray: salesforce.com's Strong Business Momentum Evident

In a research report released earlier today, Piper Jaffray raved about an investor meeting with salesforce.com's CRM CFO, Graham Smith, as the company has strong business momentum made evident by the discussions that took place. “Three key takeaways: 1) CRM should enjoy a 2 to 3 year period of accelerated billings/cash flow growth, as the annual billings mix could escalate from <65% to 70-90% of total; 2) the non-SFA new bookings mix should reach 50% in the next year or two, marking an inflection point in new-product adoption while defeating a significant pillar of the bear thesis; and 3) an $8B-$10B revenue run rate is conceivable in 5 years, in our view, using a mid-30s CAGR, as CRM marches past its Sales/Marketing core and extends deeper into heavy-usage, pervasive apps that are synergistic with its broader Social message. Reiterate Overweight rating and CRM as a top pick, target $206,” Piper Jaffray commented in the report. Salesforce.com closed yesterday at $147.17.