Deutsche Bank Previews Salesforce.com's Q4 Print, Sees No Slowdown In Momentum

Loading...
Loading...
In a report published Monday, Deutsche Bank analyst Karl Keirstead previewed
salesforce.com, inc.
's
CRM
first quarter report which is scheduled to be released on February 25. The analyst reached out to several checks in the SFDC ("Sales Force.Com") eco-system which suggested there is no slowdown in momentum. "Feedback from our checks tilted positive," Keirstead wrote. "No one flagged a slowdown in deal momentum, not even in SFDC's larger and more mature Sales Cloud business." Keirstead noted that checks suggested that the Service Cloud segment was the "most positive," with the only negative being that mega-deals of $50 million or more were "scarce." In the mid-market, the analyst's findings suggested that
Microsoft Corporation's
competing products are "getting more play" and sometimes impacts pricing, but that "SFDC wins the overwhelming majority of those decisions even though it does delay the cycle a bit." Keirstead also concluded that bigger efforts from the likes of
Oracle CorporationORCL
and
SAP SE SAP have not yet impacted SFDC's pipeline and deal activity. The analyst also wrote that the focus on salesforce.com's call will be billings growth and the outlook for fiscal 2016 non-GAAP operating margins along with the possibility that SFDC raises its initial fiscal 2016 revenue growth guidance of 24 percent which was "modestly disappointing." Shares remain Buy rated with a $70 price target.
Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorAnalyst RatingsCRMKarl KeirsteadSalesforceSAPSFD
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...