Salesforce.com, inc. CRM's price target was raised from $99 to $105 by Goldman Sachs following the company's FY Q1 2017 results. Salesforce is currently on Goldman's Conviction Buy List.
Analyst Heather Bellini writes, "We continue to believe this strength is driven by the company’s Ignite sales strategy, focusing on transformational deals at the C-suite level, as well its verticalized product approach." As a result, billings and cashflow estimates were increased.
Bellini points out that the largest revenue increases are taking place in the fourth quarter because deals are being renewed at higher rates. This was the cause of a deepening quarter-over-quarter revenue decline.
Despite increasing its price target, Goldman Sachs is lowering the multiples it uses for calculation due to slower expected growth year-over-year.
Shares of Salesforece last traded at $82.53 in early Thursday trading. The stock closed at $77.89.
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