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UPDATE: Wedbush Securities Initiates Coverage on Salesforce.com with Outperform Rating, $195 PT

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In a report published Friday, Wedbush Securities initiated coverage on Salesforce.com (NYSE: CRM) with an Outperform rating and $195.00 price target.

Wedbush Securities noted, “We are initiating coverage of salesforce.com (CRM) with an OUTPERFORM rating and 12-month target price of $195. Salesforce is a well-covered name, and the company is highly regarded for its impressive growth, innovative SaaS business and technical model, and marketing effectiveness. Given a CY12 P/E just over 100x, bears naturally ask, ‘What is it about the salesforce story that's not already priced into CRM shares?' If there isn't much hair on the salesforce story, there is at least some fuzz. The company invests heavily in growth, sometimes frustrating investors' EPS expectations, pressuring margins, and raising questions about its long-term margin potential. Also, investor visibility into top-line growth is limited by a lack of metrics. Given the company's revenue run rate near $3B and significant CRM market share, investors wonder how long growth can continue near the 30% level, off of a large base and within a CRM market growing 9% annually.”

Salesforce.com closed on Thursday at $150.10.

Posted-In: Wedbush SecuritiesAnalyst Color Initiation Analyst Ratings

 

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