Salesforce.com Is Suntrust's Newest 'Top Pick' After Demandware Acquisition
SunTrust Robinson Humphrey selected salesforce.com, inc. (NYSE: CRM) as the newest "Top Pick" after the company acquired Demandware Inc (NYSE: DWRE) at $75.00 a share. The deal was announced last Friday. The brokerage has a Buy rating with a price target of $98.00 on salesforce.
In a research note to clients, SunTrust analyst John Rizzuto said that the acquisition may be the best of the Cloud Era. The analyst believes salesforce.com's Demandware acquisition is "prescient."
The brokerage expressed its confidence that the value proposition for e-commerce platforms would change dramatically as a result of Demandware acquisition. The focus would shift to a customer-centric approach from a transaction-centric approach.
Rizzuto commented, "The market leader could have a billion-dollar business within ten years – but the synergies could drive other businesses even higher.Salesforce.com is our new top pick."
Salesforce.com has already commenced tender offer to acquire Demandware shares. Once the merger is completed, Demandware stockholders, other than stockholders who have properly and validly exercised their statutory rights of appraisal under Delaware law, would be entitled to get an amount in cash equal to $75.00 per share of Demandware common stock, net to the stockholder in cash, without interest thereon, less any required withholding taxes.
At time of writing, salesforce was down 0.21 percent at $81.66; Demandware was down 0.09 percent at $74.93.
Latest Ratings for CRM
|Oct 2016||Rosenblatt||Initiates Coverage On||Buy|
|Oct 2016||DA Davidson||Maintains||Neutral|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.