Bank of America Reiterates Buy on salesforce.com Following Strong 2Q Results
In a report published Friday, Bank of America analyst Kash Rangan reiterated a Buy rating and $57.00 price target on salesforce.com (NYSE: CRM).
In the report, Bank of America noted, “The stock is up 7% in the aftermarket following strong 2Q results. The bears have focused on adjusted billings, which saw meaningful improvement in the quarter. We calculate adjusted CC organic billings grew 34% y/y. Underlying new DR growth trends are better as the tailwind from annual billing and multi-year contracts get smaller. After seemingly mixed 1Q results, the Q2 beat clearly demonstrates that seasonality is having a meaningful impact on the business as the company pushes deeper into the enterprise. The company expects DR growth in the high 20's excl. ET, providing a relief to investors since DR is a leading indicator.”
salesforce.com closed on Thursday at $43.65.
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