Wall Street analysts’ views on Salesforce
Earlier in this series, we discussed Salesforce’s (CRM) recent announcement of its fiscal 1Q17 results and the resulting positive impact on the stock.
In the software space, where Salesforce operates, Microsoft (MSFT), Oracle (ORCL), IBM (IBM), and SAP (SAP) are prominent players. Let’s take a look at select market-centric views and metrics from Salesforce.
Among the 46 analyst recommendations on Salesforce’s stock, there’s only one “sell” recommendation. As we can see in the chart above, more than 90% of analysts’ recommendations on the stock are “buys.” The remainder are “hold” recommendations.
Salesforce’s price performance
Salesforce’s stock price movement in the last month has been positive. As of May 18, the company’s stock had risen ~2.2%. In the last year, Salesforce’s stock value has risen ~9%. Earlier in the series, we highlighted the factors that are exerting pressures on Salesforce’s stock.
Analysts’ target prices
The Wall Street consensus target price for Salesforce was $89.44 per share on May 18, 2016. The median target price was $90.00 on the same day. Salesforce’s closing price was $81.25 on May 19, 2016.
Jefferies, a research company, reiterated its “hold” rating on Salesforce’s stock and increased its price target to $80 from $74.
Investors who want to gain exposure to Salesforce can consider investing in the SPDR S&P 500 ETF (SPY). SPY has exposure of ~29% to application software. It invests ~0.23% of its holdings in Salesforce.