UPDATE: Credit Suisse Upgrades Salesforce.com to Outperform; Expansion Cycle Underway
Credit Suisse raises its rating on Salesforce.com (NYSE: CRM) from Neutral to Outperform and increases its price target from $145 to $185, as it believes an upgrade and expansion cycle is under way across multiple application segments.
Credit Suisse comments, "We believe that the convergence of multiple technologies, which are core to the fourth-generation architecture, is having more dramatic effects across both the B2B and B2C CRM markets than any other applications segment, as organizations feel increasingly compelled to modernize and expand CRM applications. Furthermore, switching from post-recession caution to a growth posture, CEOs are focused on retaining existing customers and attracting new customers, which is placing increased attention on outdated CRM applications. As such, we believe that the industry stands at the beginning of a multiyear e-commerce, marketing, sales, service, and call center replacement cycle."
CRM closed at $158.94 on Wednesday.
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