Bank Of America Sees Multiple Positive Levers Ahead For salesforce.com

In a report published Wednesday, Bank of America analyst Kash Rangan reiterated a Buy rating and $73.00 price target on salesforce.com CRM. In the report, Bank of America noted, “Our thesis is that CRM is a long-term market share winner, benefiting from the structural shift to OnDemand. We see multiple positive levers: 1) broader distribution - 50% of Global 500 that are not customers can be targeted. 2) lower attrition as enterprise ramps. 3) steady improvement of the average annual attrition to add-on/upgrade sales. 4) verticalization of the sales force to get deeper penetration. 5) broadening addressable market into ecommerce, platform, analytics and HCM.” salesforce.com closed on Tuesday at $52.75.