- UBS analyst Karl Keirstead downgraded Salesforce.com Inc CRM to Neutral from Buy with a price target of $265, down from $315. The price target implies an upside of 6.7%.
- After speaking to large enterprise IT executives and services partners of Salesforce, the analyst is concerned that more "front-office/sales and marketing" technology spend was pulled forward in 2020 and 2021 than most investors think.
- This dynamic could pressure Salesforce's growth rate in 2022, Keirstead adds.
- Given the risk of "more modest growth rate upside" in 2022, the stock's valuation is "reasonable but not compelling," even with an improving margin story, Keirstead notes.
- Price Action: CRM shares closed lower by 2.83% at $248.23 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
