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J.P. Morgan: Salesforce Could Fetch $100/Share In Bidding War

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J.P. Morgan: Salesforce Could Fetch $100/Share In Bidding War
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salesforce.com, inc. (NYSE: CRM) could fetch $100 a share if a bidding war broke out, an analyst said Wednesday.

J.P. Morgan's Mark R. Murphy said he had "no conclusive evidence" regarding speculation about an offer for the customer service technology company. But Murphy said $100 a share for Salesforce would be "consistent with current multiples" for fast-growing subscription software companies.

Salesforce traded recently at $76.44, up sharply on news from Bloomberg that it hired investment bankers after being approached by a potential acquirer.

Related Link: Wedbush: Salesforce.com's Most Likely Bidder Is Oracle

Murphy noted that Salesforce Chief Executive Marc Benioff "was sitting in the front row" at a developers conference Wednesday hosted by Microsoft Corporation (NASDAQ: MSFT). Murphy also noted that Oracle Corporation (NYSE: ORCL) recently raised $10 billion in a debt offering.

News earlier this month that Salesforce's former Chief Financial Officer Graham Smith will unexpectedly remain as an advisor instead of retiring as expected "is of interest to us," Murphy said, although he said its relevance is unclear.

A deal, Murphy said, would be "the largest in software history."

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DateFirmActionFromTo
Nov 2017Credit SuisseMaintainsOutperform
Nov 2017Morgan StanleyMaintainsOverweight
Nov 2017UBSInitiates Coverage OnBuy

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