, inc. (CRM): Canaccord Bullish Post-Earnings

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In a research report released yesterday, Canaccord Genuity analyst Richard Davis reiterated a Buy rating on, 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, 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.”

According to, 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, inc. (NYSE:CRM), and is ranked #656 out of 3257 analysts.

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