UBS Raises Price Target on salesforce.com (CRM) Following a Strong 1Q

UBS reiterated a Buy rating on salesforce.com (NYSE: CRM), and raised the price target to $100.00 (from $92.00), following the company's 1Q earnings report. Revenues of $1,917M beat the Street's $1,893M estimate as well as guidance of $1,885-1,895M. EPS was reported at $0.24, in line with the Street's $0.23, and at the high end of the guidance of $0.23-0.24.

Analyst Brent Thill commented, "After what we called a "monster" FQ4, it appears CRM barely took any time off to celebrate as it delivered an outsized beat & raise for what should be a seasonally slower FQ1. It's clear the CRM team is training & executing at a higher level. Rev growth in all 3 geos accelerated (ex-FX), and Sales Cloud, the biggest Cloud at a $2.9Bn annual run rate, accelerated for the 4th qtr. As detailed in our preview, CRM continues to add growth engines at a rapid pace (analytics M&A, vertical Clouds, gov't awards, more strategic roles), which increases our confidence it can sustain high growth. Mgmt is already looking at the $20Bn goal, and it appears AI/machine learning will be the next area of pervasive CRM innovation. We continue to view CRM as one of the best large cap growth stories and a core holding for the new generation of Cloud-based software."

For an analyst ratings summary and ratings history on salesforce.com click here. For more ratings news on salesforce.com click here.

Shares of salesforce.com closed at $77.87 yesterday.

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