UPDATE: Bank of America Reiterates on salesforce.com on Multiple Positive Levers Going Forward
In a report published Thursday, Bank of America analyst Kash Rangan reiterated a Buy rating on salesforce.com (NYSE: CRM), and raised the price target from $64.00 to $68.00.
In the report, Bank of America noted, “We see multiple positive levers going forward: 1) lower attrition as enterprise ramps; 2) broader distribution whereby 50% of Global 500 that are not customers can be targeted; 3) broadening TAM (total addressable market) into ecommerce, platform, analytics and HCM; 4) continued growth of ISV ecosystem which has quadrupled to900 in 2 years; 5) verticalization of the salesforce to get deeper penetration. Our proprietary analysis suggests CRM could sustain high growth (30%+ CAGR) for four to five years, with strength in marketing and platform. Our $68 PO is based on 8.6x EV/Recurring revs and 8.2mn subs exiting 1Q:FY16.”
salesforce.com closed on Wednesday at $63.02.
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