UPDATE: Deutsche Bank Downgrades Salesforce.com on Near-Term Concerns
In a report published Wednesday, Deutsche Bank transferred coverage of Salesforce.com (NYSE: CRM) to analyst Karl Keirstead. Deutsche Bank downgraded the rating from Buy to Hold and lowered the price target from $65.00 to $60.00.
Keirstead noted that although Salesfoce.com is attractive medium-term due to cloud computing, the company's near-term stock set-up is not “ideal.” The analyst remarked on many recent changes including the acquisition of ExactTarget, reevaluating sales leadership and leveraging the cloud-based development platform to expand in the total available market (TAM). In addition, Japan is still “challenged.”
Deutsche Bank commented, “In our view the Street is particularly excited about the impact that the new sales head Keith Block will have on large deal signings. We tilt positive about most of these changes, although it is worth asking (especially in light of the billings growth slowdown in the first half of fiscal 2014) if they stem from any perceived limitation of SFDC's historical standardized solution set.”
Salesforce.com closed at $61.14 on Wednesday. Shares are down as much as 3.7678% at $58.92 today.
Latest Ratings for CRM
|Aug 2014||Deutsche Bank||Maintains||Buy|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.