UBS Sees Salesforce.com Releasing a Killer App, Upgrades to Buy
Updated · Jul 15, 2010
As reported on Smart Trend, UBS issued a note to clients upgrading shares of Salesforce.com (NYSE:CRM) to Buy from Neutral and boosting its target to $111 from $90 citing expectations for better-than-expected results.
“UBS analyst Brent Thill said, ‘Our upgrade is based on: (1) Chatter product gives us increased comfort on co. exceeding FY11 guidance and achieving higher FY12 growth; (2) co boasts industry-leading growth despite recession + accelerating momentum in deferred revs, bookings, & transaction volume; (3) positive stock seasonality leading up to Dreamforce user conference (avg. +42% gain during Aug-Nov period, in CY2004-09 ex-08) + enterprise demand seasonal uptick in back half of the year.'”