Stock Update (NYSE:CRM): Salesforce: Street Underestimating Growth Prospects, Says Morgan Stanley

[at Barrons.com] – Morgan Stanley’s Keith Weiss today reiterates an Overweight rating on shares of cloud computing star Salesforce.com (CRM), and an $86 price target, writing that estimates may be too low based on his review of its addressable market. In the first of a planned series of reports on different parts of the business, Weiss argues that “Salesforce.com’s TAM remains underestimated by most investors and industry analysts.” The “core” of Salesforce, its traditional customer-relations software, is what’s known as “Sales Cloud,” and it’s the first line of attack for Weiss. Read more on this. salesforce.com, inc. (CRM) , valued at $50.95B, opened at $74.77. Looking at the equity, the company’s one day range is $74.45 to $76.19 with a one year range of $52.60 to $82.90. CRM shares are currently priced at 73.53x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 21.00x earnings multiple for the same period. In a review of the consensus earnings estimate this quarter, 39 sell-side analysts are looking at $0.23 per share, which would be $0.07 better than the year-ago quarter and a $0.02 sequential increase. What we find to be interesting is that the full-year EPS estimate of $1.01 is a $0.26 better when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $1.89 Billion. If realized, that would be a 25.17% increase over the year-ago quarter. More recently, Macquarie Initiated CRM at Outperform (Mar 4, 2016). Previously, Credit Agricole upgraded CRM from Outperform to Buy. When considering if perhaps the stock is under or overvalued, the average price target is $88.49, which is 18.35% above where the stock opened this morning. See more in (NYSE:CRM) Similar Articles: Market Update: Salesforce.com Inc (NYSE:CRM) – Salesforce Announces Salesforce for Messenger Platform Company Update: Salesforce.com Inc (NYSE:CRM) – Salesforce just bought a machine learning startup that was backed by its CEO Marc Benioff Market Update: Salesforce.com Inc (NYSE:CRM) – Salesforce Grants Equity Awards Under Its Inducement Equity Incentive Plan