Salesforce Shares Still Worth $100, Says Credit Suisse

Credit Suisse's Philip Winslow maintained an Outperform rating on

, with a price target of $100. The company reported robust F4Q billings and revenue results, driven by 600 transactions that were higher than $1 million. The EPS was in line with the consensus, while the revenues and billings beat the consensus expectations. The F4Q operating margins beat consensus, marking the seventh successive quarter of margin expansion. "Salesforce.com's results underscore our thesis that (1) demand for Sales Cloud remains solid, (2) growth in Service Cloud and Platform remain particularly strong, and (3) management continues to focus on margin expansion," Winslow said. The analyst believes that the company is the most leveraged in Credit Suisse's coverage universe to the significant expansion and refresh cycle across the B2B and B2C CRM segments, and that senior management now has a greater focus on cost control. "Propelled by replacement and expansion cycles across B2B and B2C implementations, we expect the CRM market to offer the greatest incremental revenue growth opportunity for software vendors over (at least) the next three to five years," Winslow added. The F2017 revenue and EPS estimates have been slightly raised from $8.145 billion to $8.150 billion and from $1.00 to $1.01, respectively.