In a research report released yesterday, Canaccord Genuity analyst Richard Davis reiterated a Buy rating on Salesforce.com, inc. (NYSE:CRM) with a $65 price target, following the company’s second-quarter results, posting revenues and non-GAAP EPS of $1.32B and $0.13, which were respectively $29M and a penny ahead of Davis estimates.
Davis noted, “This was a classic beat and modest raise quarter. Revised guidance points to 32% revenue growth and ~150 bps of operating margin expansion in F2015. Interestingly, Q3/15 marks the first full quarter that Salesforce.com, inc. (NYSE:CRM) will have lapped the ET acquisition, and implied billings guidance suggests healthy, 25% growth.”
The analyst added, “As the best-in-class cloud software firm, Salesforce remains our favorite large cap growth stock. With more transparency (revenue run-rates of the various clouds was a good start), the firm could see multiple expansion; however, even if this doesn’t happen, we expect the shares to advance at least 20% over the next 12 months. That’s a worthwhile potential return for a large cap stock.”
Value Partners Asia ex-Japan Equity Fund has delivered a 60.7% return since its inception three years ago. In comparison, the MSCI All Counties Asia (ex-Japan) index has returned just 34% over the same period. The fund, which targets what it calls the best-in-class companies in "growth-like" areas of the market, such as information technology and Read More
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Richard Davis has a total average return of 4.5% and a 56.1% success rate. Davis has a 18.0% average return when recommending Salesforce.com, inc. (NYSE:CRM), and is ranked #656 out of 3257 analysts.