Is Salesforce Stock Worth $70 Per Share? This Analyst Thinks So

In a report published Monday, Brean Capital analyst Sarah Hindlian initiated coverage of

with a Hold rating and $70 price target. Hindlian noted that a Hold rating is justified due to a positive view of the company's expanding and dominating products, balanced by the nature of the "law of large numbers" that dictates growth eventually slows. Hindlian stated that Salesforce's deal size and renewal rates are increasing as the company continues to attract larger clients by offering new products such as the Salesforce.com Platform which is the "most robust" offering in the marketplace. In addition, Analytics will gain adoption, as customer-facing clients benefit from previously back-office software. However, the analyst concluded that despite a positive view of the company and its products, valuation at current levels are "fully valued" and growth will be impacted by foreign currency risks in 2015. As such, investors should seek a better entry point for a company which, fundamentally, should be viewed "very favorably."