Wedbush Reiterates Neutral Rating on Salesforce.com Following 1Q Results

In a report published Friday, Wedbush analyst Steve Koenig reiterated a Neutral rating and $42.00 price target on Salesforce.com CRM.

In the report, Wedbush noted, “Although CRM beat 1Q revenue expectations last week, we were disappointed by the low level of deferred commission expenditures, which we regard as the most reliable indicator of new sales activity. Asked about the decline in deferred commissions, management said the company had some ‘spectacularly large transaction closings' in the year-ago quarter, but didn't have marquee transactions that drove big commission checks in 1Q. Also, the company said that its year-over-year growth in hiring (presumably sales hiring) was a bit slower this year.”

Salesforce.com closed on Thursday at $42.76.