UPDATE: FBN Securities Initiates Salesforce.com at Outperform on Market Share Gains
FBN Securities initiated coverage on Salesforce.com (NYSE: CRM) with an Outperform rating and a $210.00 price target.
FBN Securities analyst Shebly Seyrafi noted, "The company is growing very well as it gains share in the SaaS CRM market and as it successfully diversifies away from its core sales force automation (SFA)/sales cloud into service, marketing, and platform clouds. In CRM, Salesforce.com is now #2 behind SAP having eclipsed Oracle recently, and it may displace SAP to earn the #1 spot this year. Furthermore, we believe that the company should be able to significantly increase its operating margin (particularly when growth slows) from ~10-13% currently to the mid/high 20s%, and possibly 30%+, eventually. Last quarter's adjusted billings growth of 48% (our estimate) was quite impressive."
Salesforce.com closed at $171.23 on Tuesday.
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