Salesforce.com Up: Analysts Say Q2 Eased Momentum Worries
Salesforce.com (NYSE: CRM) gained more than eight percent in late-day trading Friday after it posted a 38 percent increase in second-quarter sales.
The company, which provides customer service technology, swung to an adjusted loss of $0.15 a share, from profits of $0.12 a share in the year-earlier period, yet its top line met expectations.
Analysts were positive, on the expectation that revenue will continue to grow. Recent results "push back concern that growth may be slowing," Citi's Walter H. Pritchard said in a note Friday maintaining a Buy and $71 target.
"With the seasonally stronger second half ahead of us, we think those concerns will subside," Pritchard said.
The company boosted its 2015 outlook and Raymond James' Terry Tillman said the company is "sticking to its beat-and-raise playbook." Tillman, noting the company has raised guidance three times this year, reiterated a strong buy and $77 target.
Recent results "will likely give the Street marginally more confidence in the company's momentum" going into what is widely seen as a seasonally strong period, Deutsche Bank's Karl Keirstead said in a note.
Keirstead, who sees risk in potentially slower-than-expected margin gains going forward, nonetheless maintained a Buy rating and $70 target.
Near Friday's close, Salesforce traded at $60.01, up $4.30.
Latest Ratings for CRM
|Aug 2016||OTR Global||Downgrades||Positive||Mixed|
|Jul 2016||Morgan Stanley||Maintains||Overweight|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.