Market Overview

Salesforce Now Firmly On The Path To $20 Billion In Sales

Share:
Salesforce Now Firmly On The Path To $20 Billion In Sales
Related CRM
Oppenheimer Praises HubSpot's Execution, Downgrades On Valuation
Benzinga's Top Upgrades, Downgrades For January 17, 2019
Salesforce: Earnings Vs. Reinvestment (Seeking Alpha)

Given salesforce.com, inc. (NYSE: CRM)’s large market opportunity, continued market share gains across product lines, cross-sell and up-sell opportunities of new offerings, and a boost in operating leverage, Credit Suisse perceives significant potential to boost operating cash flow in the next few years.

Salesforce saw a sharp after-hours sell-off even as it posted strong second-quarter results Tuesday with slim beats in sales, billings and earnings per share.

Credit Suisse attributed the 3.5-percent plunge to disappointment in management’s steady full-year guidance for margin improvement. Salesforce maintained its projections between 125 and 150 basis points.

However, the analysts expect investors to “begrudgingly” look past the stagnant outlook considering the firm’s outperformance in bookings. The measure, when combined with Salesforce’s deferred revenue guide, puts the firm on pace to meet Credit Suisse’s third-quarter estimates.

Apart from this assessment, the research firm was encouraged by 17.4-percent year-over-year growth in cloud sales revenue, which indicated acceleration even against last year’s strong international growth.

In spite of the risk of increased competition, Credit Suisse raised its full-year estimates for revenue from $10.285 billion to $10.384 billion and EPS from $1.30 to $1.31.

The analysts maintained an Outperform rating on the stock and raised their price target from $110 to $115.

Related Links:

Salesforce The ‘Most Attractive Stock’ In Its Universe, Says Piper Jaffray

Salesforce CEO Talks FANG Stocks, Singles Out Upside In Amazon’s AWS

Image: Dion Hinchcliffe, Flickr

Latest Ratings for CRM

DateFirmActionFromTo
Jan 2019Stephens & Co.Initiates Coverage OnOverweight
Jan 2019Atlantic EquitiesInitiates Coverage OnOverweight
Jan 2019Pivotal ResearchUpgradesHoldBuy

View More Analyst Ratings for CRM
View the Latest Analyst Ratings

Posted-In: cloud cloud computingAnalyst Color Earnings News Reiteration Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (CRM)

View Comments and Join the Discussion!

Benzinga's Top Upgrades, Downgrades For August 23, 2017

Investors Are Losing Patience With This Regional Bank ETF