27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Salesforce.com, inc. (NYSE:CRM) acquired MuleSoft in early 2018 in a $6.5-billion deal that wasn't fully appreciated by the Street, according to Morgan Stanley.
The Analyst
Morgan Stanley's Keith Weiss maintained an Overweight rating on salesforce with a price target lifted from $153 to $178.
The Thesis
Salesforce's acquisition of MuleSoft addresses the company's challenge of connecting and utilizing data more efficiently from the legacy platform towards saleforce's platform, Weiss said in a research report.
The acquisition is also intended to expand salesforce's value proposition as a broader public and private hybrid cloud environment, the analyst said. The deal comes at a time when digital transformation is a top priority among chief information officers, especially in the areas of customer service, marketing and sales, he said.
Under salesforce's umbrella, MuleSoft should generate more than $1 billion by 2021 given an estimated market opportunity of more than $25 billion, Weiss said.
On the other hand, MuleSoft is unlikely to report an operating income profit until fiscal 2022, and the acquisition is unlikely to be accretive to salesforce's free cash flow until 2023 and to EPS the following year, the analyst said.
If salesforce achieves better-than-expected acquisition-related synergies, the stock could move higher by more than 50 percent from current levels to $223 per share, Weiss said.
Price Action
Shares of salesforce were trading 1.1 percent higher to $146.05 at the time of publication Tuesday.
Related Links:
Wall Street Reacts To Salesforce's $6.5-Billion Mulesoft Acquisition
Bernstein's Bearish Stance On Salesforce No Longer Applies
Photo courtesy of salesforce.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!