Salesforce.com, inc is soaring on earnings report, Wall Street Reacts

Salesforce.com, inc.

reported fourth quarter earnings that were well received by Wall Street. The global cloud computing company reported revenue of $1.44 billion, up 25.2 percent YOY and EPS of $0.14. Both were in line with consensus estimates. Here is what Wall Street firms are saying post earnings. 1. DA Davidson: "While the growth rate remains unchanged from preliminary guidance given last earnings call, the midpoint of the revenue range increased approximately $20 million...Deferred revenues grew 32% YoY, an acceleration from 3QFY15's 28 percent growth." The firm rates salesforce.com, inc. as Neutral with a 1 year price target of $66. 2. Deutsche Bank: "It was the first fourth quarter with the new sales leader Keith Block, his leadership team and their new sales playbook in place. Billings growth was an estimated 37 percent in c/c and 30 percent in dollars in 4QF15...They delivered." Deutsche Bank rates salesforce.com, inc as Buy with a 1 year price target of $80.00. 3. Wedbush: "We are impressed with the company's execution, but valuation looks stretched as CRM's growth trend decelerates….Downside risks include increasing competition with Microsoft Dynamics CRM and any correction in high growth valuations; upside risks include sustained revenue momentum and traction with target account selling to CRM's top accounts." Wedbush rates salesforce.com, inc as Neutral with a 1 year price target of $66. 4. Morgan Stanley: "Salesforce.com has long been levered to some of the most compelling secular growth drivers in technology — the shift towards cloud computing, increasing corporate focus on customer facing applications, the emergence of mobile as a primary user interface into enterprise applications,and going forward the increasing demand for analytical capabilities to optimize both business decisions and business processes." Morgan Stanley points to Keith Block's strategic selling initiatives, verticalization of their products and market strategy, and their distribution capability as three drivers of the company going forward. Morgan Stanley rates salesforce.com, inc. as Overweight with a $80 price target. 5. Credit Suisse: " we view Salesforce.com as the company in our coverage universe most leveraged to the massive technology refresh and expansion cycle across the multiple CRM segments...the company's operating margin in FQ1 and guidance for FY2016 reinforce our belief that there has been greater focus on cost control from senior management since the beginning of FQ4, which boosts our confidence in potential margin expansion going forward." Credit Suisse rates salesforce.com, inc. as Outperform with an $80 price target. 6. Citi: "We believe strength was broad-based by geo (Europe still a standout), market segment (commercial remains strong) and product line (sales still growing ~15%). In all, the Q4 report made it difficult to be concerned about a slowdown at CRM, although does set up a tougher Q1 comp." Citi rates salesforce.com, inc as a Buy with a $78 price target. Currently salesforce.com, inc is trading at $69.29, up 10.23 percent.