NEW YORK (TheStreet) -- Shares of Salesforce.com (CRM) are higher by 3.73% to $72.78 in afternoon trading after KeyBanc Capital Markets increased its price target to $80 from $77 and reiterated its "overweight" rating for the San Francisco-based provider of enterprise cloud computing solutions.
Yesterday, Salesforce reported first quarter 2016 fiscal results, with net revenue of $1.51 billion, up 23% year-over-year, compared to KeyBanc's projection of $1.50 billion in net revenue for the quarter, according to the analyst firm.
The company reported non-GAAP net income of $4.09 million, earning 16 cents per share for the first quarter, above KeyBanc's EPS projection of 13 cents per share.
"Salesforce.com produced one of its cleanest quarters on record, leaving little room for naysayers," said KeyBanc analyst Brendan Barnicle. "Despite seasonality headwinds, Saleforce.com exceeded billings expectations, growing them over 21% y/y to $1.25 billion, better than the consensus estimate of $1.18 billion."
"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, solid stock price performance and increase in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."