UBS: No 'Vacation Time' For Salesforce
In a report published Thursday, UBS analysts maintained a Buy rating on salesforce.com, inc. (NYSE: CRM), while raising the price target from $80 to $85, after the company reported its 1Q results.
Salesforce.com reported good results for F1Q, with "solid beats across major metrics" and healthy progress in improving profitability.
The company's Platform revenue grew 36 percent y/y, with Service Cloud up 38 percent. A record number of $1M+ deals were reported for the first quarter. All three major regions recorded growth of 27-28 percent ex-FX. Salesforce.com reported a total backlog of $9.1Bn, representing 27 percent growth y/y.
"We believe customers are embracing CRM's front-office platform vision, and buying multiple Cloud products either upfront or as part of a multi-year commitment…We believe CRM can continue to outgrow the market as it still innovates like a start-up while executing like a blue-chip tech leader," the analysts said.
The revenue, billings and EPS estimates for FY16 from $6,510M to $6,540M, from $7,252M to $7,269M and from $0.69 to $0.71, respectively.
Latest Ratings for CRM
|Feb 2017||Needham||Initiates Coverage On||Hold|
|Jan 2017||Pivotal Research||Downgrades||Buy||Hold|
|Dec 2016||Drexel Hamilton||Initiates Coverage On||Buy|
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