|

資訊

    首頁   >     行業    >     正文

    Salesforce is a bargain Wall Street analysts say

    摘要:Despite a boatload of massive acquisitions and concerns about the core business, Wall Street thinks Salesforce is a keeper.

      Salesforce's stock price is down 10% since August 1 when it closed on its $14 billion all-stock deal for Tableau.

      Investors were also unsure that the company immediately announced another big acquisition, giving rise to fears that its core business may no longer by high growth enough to justify a high stock price.

      And Wall Street analysts are not expecting great things for the stock after Salesforce reports its second quarter next week either.

      But they say that all of this adds up to a reason to buy the stock.

      Click here for more BI Prime stories.

      Salesforce's stock price is down 10% since August 1 when it closed on its massive, $14 billion all-stock deal for Tableau.

      And Wall Street analysts like Morgan Stanley's Keith Weiss and Nomura's Christopher Eberle say that means the time is ripe to buy the stock.

      Weiss thinks the stock is a deal at under $150 a share, and will rebound to $178 share over time, with Eberle predicting $180.

      “Significant investor concern around a slowdown in the core business creates a strong buying opportunity,” Weiss writes in a recent research note. He rates the stock “overweight.”

      The stock is down for a lot of reasons. The big one is because investors are worried that Salesforce has run out of growth in its main market — cloud software for sales and marketing — and is therefore spending big bucks to go buy growth through pricey acquisitions. MarketWatch's Daniel Newman even said the Tableau acquisition “smacks of desperation.”

      The stock is also down in part because of the dilutive impact of the Tableau deal — Salesforce issued more shares to help pay for the deal and warned investors that earnings per share would decline 20 cents to 22 cents, with 2020 adjusted EPS now anticipated at $2.68 to $2.70.

      It didn't help that Salesforce submitted a bunch of odd corrections after it announced the original $15 billion deal in June with. The original acquisition announcement sent Salesforce's stock tumbling, but in the days that followed Salesforce explained in updated SEC filings that it had made some calculating errors and that it was paying only 840 million of its shares to finance the all-stock deal, not 900 million shares.

      That's a good thing for shareholders since it means the hit to Salesforce's earnings per share won't be as bad. But the company's clumsy delivery was not very inspiring, to say the least.

      The ink wasn't even dry on the Tableu deal — Salesforce's largest acquisition ever — when it announced another big-ticket deal. Salesforce said last week that it will pay $1.5 billion in cash and stock to buy ClickSoftware.

      Although Salesforce's shopping spree is raising eyebrows, this purchase makes a lot of sense on its face. As Morgan Stanely's Weiss explained, Salesforce jointly developed its field service management product with ClickSoftware, whose product helps companies track things like sending repair people to customer sites. Salesforce was licensing some of ClickSoftware's software for this product and it's one of the fastest growing areas in the Salesforce Service Cloud. So it makes sense to bring that in-house, even at $1.5 billion price tag.

      All of that is on top of the deal announced in April in which Salesforce said it was buying its own non-profit arm, Salesforce.org, for $300 million.

      “We see a lot of noise that must be sorted through this quarter, following the CRM.org [the Salesforce.org deal], DATA [Tableau], and, more recently, ClickSoftware acquisitions, as well as multiple FY guidance revisions. We see difficult comps[comparisons] in both F2Q and F3Q. ... We continue to highlight the uncertain impact of the moving pieces created via recent acquisitions and proposed acquisitions (such as ClickSoftware),” Eberle writes.

      MuleSoft proved the naysayers wrong

      Yes both Weiss and Eberle believe that Salesforce has proven it can assimilate large acquisitions.

      MuleSoft is the main example. That $6.5 billion deal was Salesforce's biggest until the Tableau acquisition, and faced plenty of skeptics at the time that Salesforce was paying too much. But a year later, MuleSoft has been hailed as the company's bright spot, its major source of subscription growth.

      With all these short term issues weighing on the stock, Weiss warns that it probably won't skyrocket after the company reports Q2 earnings next week.

      “A seasonally weaker quarter, with mounting FX impacts and the messiness of two recent acquisitions, we don't necessarily see Q2 as a compelling catalyst (rather we like the current price levels),” he writes.

      They are telling investors to be patient.

      “Nonetheless, we continue to see CRM as a core long-term holding in the software space. Reiterate Buy and $180 TP [target price],” Eberle writes.

      And they are not alone. Out of 39 analysts tracked by Yahoo finance, the average share price target is is $183.31 and the average rating is buy/strong buy.

    熱點資訊

    Malaysian Ringgit

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    當前匯率  :
    --
    請輸入金額
    Malaysian Ringgit
    可兌換金額
    -- United States Dollar
    風險提示

    外匯天眼資料均來自各國外匯監管機構的官方資料,如英國FCA、澳大利亞ASIC等,所公佈的內容亦均以公正、客觀和實事求是為宗旨,不向外匯交易平臺收取公關費、廣告費、排名費、資料清洗費等灰色費用。外匯天眼會盡最大努力保持我方資料與各監管機構等權威資料方資料的一致及同步性,但不承諾與其即時保持一致和同步。

    鑒於外匯行業的錯綜複雜,不排除有個別外匯交易商通過欺騙手段獲得監管機構的合法註冊。如外匯天眼所公佈資料與實際情況有不符之處,請通過外匯天眼“投訴”和“糾正”功能,向我們提出,我們將及時進行核實查證,並公佈相關結果。

    外匯、貴金屬和差價合約(OTC場外交易)是槓桿產品,存在較高的風險,可能會導致虧損您的投資本金,請理性投資。

    特別提示,外匯天眼所列資訊僅供參考,不構成投資建議。外匯平臺由客戶自行選擇,平臺操作帶來的風險,與外匯天眼無關,客戶需自行承擔相關後果和責任。

    ×

    選擇國家/地區