Salesforce.com (CRM) - Get salesforce.com, inc. Report shares were falling Tuesday after the company issued slightly disappointing guidance for the current quarter, but analysts uniformly maintained their bullish outlooks on the customer relationship management software leader.
Salesforce topped analysts' fourth quarter estimates for both revenue and earnings, but its guidance for April quarter revenue of between $3.67 billion and $3.68 billion (up 22%) and EPS between $0.60 and $0.61 was below consensus estimates of $3.69 billion and $0.63, respectively. The stock was falling 1.2% to $156.66 on Tuesday morning.
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Analysts at Canaccord Genuity reiterated the company's "buy" rating while raising their price target to $175 from $165. The firm characterized the stock as an "excellent house in an expensive neighborhood." Canaccord is bullish on the company's fundamentals and believes the company's forecast of doubling its revenue to between $26 billion and $28 billion by fiscal 2023 is feasible.
Analysts at Barclays also maintained their "overweight" rating on the stock while raising their price target by 5% to $180 per share from $172 per share. The firm did note, however, that Salesforce's fourth quarter earnings beat was facilitated by a 17 cent benefit from tax adjustments and a 12 cent benefit from mark-to-market on strategic investments.
JPMorgan maintained its "overweight" rating on Salesforce while raising its price target to $180 from $160 per share. "Salesforce.com stands out from almost any pack as the pioneering trailblazer of the cloud computing movement, and it has blossomed into a true multi-product success story as it now rides atop multiple product pillars of substantial scale and trajectory," analyst Mark Murphy wrote.
Analysts at Deutsche Bank maintained their overall "buy" rating and $185 price target on the company. But they did lower fiscal 2020 revenue estimate slightly to $16.13 billion from $16.6 billion.
Analysts at Oppenheimer were also bullish on the company's fundamentals while maintaining their "outperform" rating and $180 price target.
"While the F4Q results and F1Q guidance may not have lived up to high investor expectations, we believe Salesforce.com is executing very well and see the F4Q business metrics combined with a higher FY2020 revenue outlook lending good support to our thesis that Salesforce.com's business can continue producing steady share gains, durable growth, and increasing cash flow, even in a slowing economy," Oppenheimer's Brian Schwartz wrote.
Analysts at Jefferies suggested that the first fiscal quarter guidance miss was a result of Salesforce missing internal new business targets in the fiscal fourth quarter, but the firm is confident that the company will be able to fulfill its long-term goals. Jefferies reiterated its "buy" rating and its Wall Street-leading $189 price target.