Goldman Sachs Reiterates Salesforce.com at Buy and Raises 12 month PT on Nothing but Net Earnings Results

In a report published Friday, Goldman Sachs reiterated Salesforce.com

at Buy and raises 12 month price target from $190 to $205. Goldman Sachs reported that, “salesforce.com reported F4Q13 results after the close, with every metric posting material upside to consensus as the company's large deal volume of 7- and 8-figure deals continued to accelerate. The company reported F4Q13 revenue and non-GAAP EPS of $835mn and $0.51 versus consensus of $831mn and $0.40 (guidance $825mn-$830mn and $0.38-$0.40 respectively). We note that a lower tax rate acted as a $0.07 tailwind to non-GAAP EPS, suggesting the real beat was $0.04 versus our forecasts. While many investors have been waiting to see if salesforce.com could post material leverage, this quarter the company did not disappoint in this regard. However, we note that last time the company beat the high end of earnings guidance by at least $0.04 was the January 2011 quarter, with a beat of $0.05. Non-GAAP operating margins came in at 12.9%, 120bp ahead of the Street." Salesforce.com shares closed at under $169.22 on Thursday.