Goldman Sachs analyst Sarah Friar this morning upped her rating on the Salesforce.com (CRM) to Buy from Neutral, with a target price of $102.
“We have held a bullish stance on SaaS [software as a service] but have stayed to the sidelines on Salesforce.com over a few specific concerns,” she writes in a research note. “However, the evolution of the company and the environment over the past 12 months has changed out view.” Friar says she sees estimates moving higher.
The next material catalyst for the stock, she says, should be April quarter earnings, which are likely to be reported in mid-May. She sees upside to estimates. Friar today upped her EPS forecast ex-employee stock options to $1.28 from $1.23 for FY 2011, to $1.65 from $1.49 for FY 2012, and to $2.09 from $1.77 for FY 2013.
Nonetheless, CRM is down $1.56, or 1.8%, to $86.16.
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