Salesforce.com (CRM) Stock Price Target Raised at Barclays

Salesforce's (CRM) price target was raised to $90 from $87 at Barclays on Thursday.
By Amanda Albright ,

NEW YORK (TheStreet) -- Barclays raised its price target on Salesforce.com (CRM) - Get Report stock to $90 from $87 on Thursday. 

The provider of enterprise cloud computing solutions reported a strong 2015 third quarter, with billings growth beating the Street's estimates by about 2%, Barclays said.

"We think that more mature adjacent product offerings (Marketing and Service Clouds) continue to see solid traction in the customer base, and we think that this level of growth can be sustained for a decent amount of time going forward given the lingering tailwind of broader Wave Analytics adoption, better traction in Platform, and now, more of a focus on verticals," the firm added. 

The firm maintained its "overweight" rating on the stock. 

Salesforce stock is up by 4.99% to $81.25 in pre-market trading on Thursday. 

Separately, TheStreet Ratings team rates SALESFORCE.COM INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

We rate SALESFORCE.COM INC (CRM) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, compelling growth in net income, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 17.3%. Since the same quarter one year prior, revenues rose by 24.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 98.6% when compared to the same quarter one year prior, rising from -$61.09 million to -$0.85 million.
  • Net operating cash flow has increased to $304.41 million or 23.79% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.48%.
  • SALESFORCE.COM INC reported significant earnings per share improvement 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 -$0.42 versus -$0.40 in the prior year. This year, the market expects an improvement in earnings ($0.72 versus -$0.42).
  • You can view the full analysis from the report here: CRM

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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