Pacific Crest improves outlook for Salesforce.com, while reiterating an $80 price target, along with an Overweight rating.
Pacific Crest has restated an Overweight rating to the stock of Salesforce.com, Inc. with target price of $80 yesterday, revealed in a sell side report. The firm upgraded its future outlook for the company following by its second quarter financial results for fiscal year 2016 after the bell rings on Thursday.
The company’s latest quarter results showed overall revenue growth of around 24% on year over year basis and approximately 28% in constant currency basis, despite being pretentious by an exclusively complex growth comparison for the fiscal year. Reliant on Salesforce over performed guidance and constant growth, the sell side research firm believes the stock to hit at least $80 mark.
The cloud computing Solutions Company reported positive billing outcomes for second quarter FY16, with sales surpassing the consensus forecast. The company reported a transparent period, despite foreign exchange volatility adversely impacting the currency.
Salesforce.com, Inc. beat its billing forecast by more than 25% and 19.3% on year over year and constant currency basis, respectively; it also surpassed analysts billing forecast of $1.58 billion. The sales revenue for the quarter came in at $1.63 billion, up 24% on year over year basis and 28% in constant currency, also more than the Street’s forecast of $1.60 billion.
The company reported earnings of 19 cents per share for the quarter ended on July 31, surpassing the consensus estimate of 17 cents per share, Sales force’s cash flow from operations stood at $304.4 million more than analysts’ expectation of around $249.9 million. However, the $3.03 billion of deferred revenue missed the analysts’ estimation of $3.05 million.
According to the analysts polled by Bloomberg, 40 of them rate the stock with Buy, four recommend a Hold, and 5 suggest gave it a Sell rating. The twelve month consensus stock price target stands at $80.87, showing an upside return potential of 21.1% compared to current closing price.
In news, Co-founder G Parker Harris III sold 5,583 shares for around $374,751 through 5 transactions on August 24 and 25. After these transactions, Mr. Harris has now left with the ownership of 23,305 shares, priced at 1,519,019.9 as of Tuesday. Burke F. Norton, Chief Legal Officer divested around 6,092 shares for $405,910 on August 24. Following the sale, he is now left with 57,342 shares. The company’s Chief Accounting Officer, Joe Allanson also sold 512 shares for $34,115 on the same day.
Salesforce.com, Inc. stock was up 0.02% to $65.18 at market close on Tuesday August 25.
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