NEW YORK (TheStreet) -- Shares of salesforce.com (CRM) are down 0.17% to $49.23 in pre-market trading after Jefferies lowered its price target to $47 from $48 and maintained its "underperform" rating.
"Given recent changes in FX rates, headwinds to top line growth due to the translation of foreign currencies to U.S. dollars for reporting purposes will be greater than they have been in 15 years for the average software company," Jefferies said.
While these changes should be well understood by investors and are not due to changes in fundamentals, reported results and guidance lower than consensus estimates may still have a temporary negative effect, analysts added.
Separately, Salesforce recently introduced Salesforce Files Connect, a centralized, universal file-sharing solution for the enterprise.
With this file sharing solution, Salesforce is the first company to combine CRM and native file integration with the most popular enterprise file repositories, allowing users to seamlessly browse, search and share files located in any repository, all from a single user interface.
TheStreet Ratings team rates SALESFORCE.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate SALESFORCE.COM INC (CRM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk."