UPDATE: Wedbush Lowers PT on Salesforce.com on Expected Near-Term Bounce from ET Outperformance, But Some Longer-Term Issues
In a report published on Monday, Wedbush analyst Steve Koenig lowered the price target on Salesforce.com (NYSE: CRM) from $42 to $40 and reiterated a Neutral rating.
In the report, Wedbush stated, "It looks to us as if CRM has set its guidance for $120M - $125M revenue contribution from ET in FY14 low enough to assure outperformance, given ET's current trajectory. Although EPS guidance looks more fairly calibrated, we think investors are likely to react positively to top-line outperformance, especially given signs of new sales weakness in 1Q. Also, the ET deal gives the company the means to avoid challenging 2H billings comparisons."
Salesforce.com closed on Monday at $38.43.
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