Market Overview

Bernstein Research Reiterates Underperform on salesforce.com on Expected Slow Growth

Share:
Related CRM
MKM Counting On 'Solid' Q2 Billings From Salesforce; Sees 'Return Of M&A A Possibility'
Deutsche Bank: Buy Xactly After Salesforce Vote Of Confidence
Get Out Of Salesforce.com (Seeking Alpha)

In a report published Wednesday, Bernstein Research analyst Mark L. Moerdler reiterated an Underperform rating and $29.00 price target on salesforce.com (NYSE: CRM).

In the report, Bernstein Research noted, “Salesforce.com's stock prices-in sustained strong growth and significant margin expansion. We believe these expectations are too optimistic. We see growth slowing in Salesforce.com's core Sales and Service Clouds, and have low expectations for the company's PaaS and collaboration offerings. We believe that the Marketing Cloud has potential but the market is still too new to model revenue that could significantly help growth. We expect competition and technology issues to limit the upside from CRM's PaaS efforts, and at a significantly lower margin than the core SaaS business. Meanwhile we do not believe Chatter has a credible monetization strategy. We also believe hosting costs will go up.”

salesforce.com closed on Tuesday at $42.46.

Latest Ratings for CRM

DateFirmActionFromTo
Jul 2015Northland SecuritiesInitiates Coverage onOutperform
Jul 2015Brean CapitalUpgradesHoldBuy
Jun 2015BairdMaintainsOutperform

View More Analyst Ratings for CRM
View the Latest Analyst Ratings

Posted-In: Bernstein Research Mark L. MoerdlerAnalyst Color Reiteration Analyst Ratings

 

Related Articles (CRM)

Get Benzinga's Newsletters