NEW YORK (TheStreet) -- Credit Suisse increased its target price on Salesforce.com (CRM) to $80, increased its estimates and set an "outperform" rating. The firm noted the company is seeing higher billings.
The stock was down 1.95% to $64.93 shortly after the market opened on Friday.
- The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 36.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 45.80% and other important driving factors, this stock has surged by 47.32% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- SALESFORCE.COM INC has improved earnings per share by 45.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SALESFORCE.COM INC reported poor results of -$0.48 versus -$0.02 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.48).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Software industry and the overall market, SALESFORCE.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
- CRM's debt-to-equity ratio of 0.64 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.42 is very low and demonstrates very weak liquidity.
- You can view the full analysis from the report here: CRM Ratings Report
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