Multiple Growth Drivers Push Salesforce Forward Making It A Top Pick


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.


Morgan Stanley's Keith Weiss reiterated salesforce.com, inc. (NYSE: CRM)'s Overweight rating while increasing the price target from $86.00 to $94.00. The rating change came after salesforce.com reported earrings Wednesday, slightly beating estimates.

"Salesforce remains one of the most compelling FCF growth stories in software and a top pick," said Weiss. The analyst was most proud of the company's surprising billings growth, which increased 31 percent year-over-year versus estimates of 15 percent.

Related Link: Barclays Raises Salesforce Price Target To $89 Following Q1 Beat

Sales cloud, "the largest and most mature segment in the Salesforce portfolio," saw growth accelerate in the first quarter. The analyst noted the company's proven ability to sign nine-figure deals after implementing price increases of 11–25 percent showed the company was "improving the value proposition of their solution set."

Additionally, working with large system integrators partners improved the functionality on the cloud platform and drove better growth in the segment, the Morgan Stanley analyst noted.

In summary, salesforce.com's ability to accelerate growth and operating margins signals "real efficiency improvements in the business."

Salesforce.com was trading up 4.21 percent at time of writing.


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.


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Posted In: Analyst ColorLong IdeasNewsPrice TargetReiterationAnalyst RatingsMoversTechTrading IdeasKeith WeissMorgan Stanley