Wall Street's Reaction To Salesforce's Earnings

salesforce.com, inc. CRM reported its first quarter results on Wednesday after market close.

Here are what some of Wall Street's top analysts are saying.

Credit Suisse: ‘Everything Is Awesome'

Phillip Winslow commented in a note that Salesforce's revenue and billings were better than expected, despite continued foreign exchange headwinds. In addition, the company's results and guidance validate the analyst's bullish stance that demand for Sales Cloud remains solid (but maturing), growth in Service Cloud and platform have been particularly strong, and growth in the Marketing Cloud has been solid.

Shares remain Outperform rated with a price target raised to $90 from a previous $80.

Barrington: ‘Growth Story Continues'

Raimo Lenschow commented in a note that investors should be "pleased" with the company's quarterly results. The analyst noted that although the first quarter was not as seasonally strong, the company's execution continues to yield good financial results. In addition, more clarity on segment growth and continued operating margin expansion and cash flow growth demonstrate Salesforce's "clear" benefits of scale and ongoing cross sell traction.

Shares remain Overweight rated with a price target raised to $79 from a previous $76.

Morgan Stanley: ‘Who Needs M&A Speculation?'

Keith Weiss commented in a note that Salesforce kicked off the fiscal year with "strong" execution across product lines and geographies that will continue to support the bull case. The analyst noted that in the seasonally weak first quarter, Salesforce demonstrated a normalized billings growth of 25 percent with approximately 200 basis points of margin expansion. In addition, two straight quarters of "strong beats" from the new CFO Mark Hawkins bolster the case for a conservative guide.

Shares remain Overweight rated with a price target raised to $85 from a previous $80.

Wedbush: ‘The Story Gets Back To Fundamentals'

Steve Koening commented in a note that Salesforce "has much more work to do" on expanding margin and reducing stock-based compensation, although the first quarter's operating margin expansion of 200 basis points was "encouraging." However, the analyst argued Salesforce's current valuation already incorporates expectation for a "very modest" deceleration and "excellent execution," following a boost in shares from media reports about a potential takeover. As such, the analyst suggested waiting for a better entry point in Salesforce shares, perhaps after media reports "quiet down."

Shares remain Neutral rated with a price target raised to $72 from a previous $66.