In a report released today, Sarah Hindlian from Brean Capital reiterated a Buy rating on Salesforce.com (NYSE: CRM), with a price target of $85. The company’s shares opened today at $72.59.
Hindlian observed, “Salesforce.com will be reporting earnings on Thursday August 20th after the market close. We expect the report and outlook will have a similar tone to Q1’15 and note an environment of generally reasonable investor expectations given the difficult FX and choppy macro environments. Our recent checks suggest ongoing demand for Service Cloud with some large deals closing in Q2, while Sales Cloud is more mature, leading to a generally in-line report. We expect the shares to continue to perform well driven by: 1) pent-up demand for integrated Marketing Cloud solutions (year-end); 2) potential Analytics Cloud wins this fall ~1 year post launch; 3) the annual Dreamforce user conf. in mid-Sept. 4) improving profitability; 5) omni-channel customer service trends; and 6) generalist PM’s seeking exposure to an industry leader at a reasonable peer valuation (~6x FY’16 EV/Sales vs. peer avg. of ~7.8x).”
Currently, the analyst consensus on Salesforce.com is Moderate Buy and the average price target is $79.14, representing a 9.0% upside. In a report issued on August 14, Deutsche Bank also maintained a Buy rating on the stock with a $90 price target.
The company has a one year high of $78.46 and a one year low of $51.04. Currently, Salesforce.com has an average volume of 3.47M.
Unlike Brean Capital`s latest rating, based on the recent corporate insider activity of 317 insiders, corporate insider sentiment is neutral on the stock. Last month, Alexandre Dayon, a the Pres, Applications & Platform of CRM sold 2,088 shares for a total of $153,197.
According to TipRanks.com, Hindlian is a 3-star analyst with an average return of 4.4% and a 70.8% success rate. Hindlian covers the Technology sector, focusing on stocks such as Facebook Inc, Oracle Corp., and ServiceNow .
Salesforce.com Inc provides enterprise cloud computing solutions, offering social and mobile cloud apps and platform services, as well as professional services to facilitate the adoption of its solutions.
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