NEW YORK - A Citi Investment Research analyst upgraded shares of Salesforce.com Inc. Thursday, saying the customer management technology company’s sales are growing and face "no significant competitive threats.
The San Francisco-based company reported its fiscal first-quarter results late Wednesday. Profit increased 13 percent, and both net income and revenue exceeded expectations due to growth in subscription support sales. For the fiscal second quarter, the company forecast greater sales than analysts had expected.
Salesforce.com (nyse: CRM - news - people ) also raised its profit and revenue estimates for the fiscal year ending in January.
Brent Thill upgraded the stock to "Buy" from "Hold" Thursday, saying investors have started to sell Salesforce.com shares because sales growth usually slows down in the July quarter. But he said the seasonal shifts are decreasing, and the recent slip in the stock price presents a buying opportunity.
Thill said the company has maintained strong business momentum, and revenue continues to grow. He raised his target price to $80 per share from $70, and increased his profit and revenue estimates.
His new price target implies the stock will rise 27.7 percent over the next year, from Wednesday’s closing price of $62.66.
Ahead of the Bell: Salesforce.com upgraded - Forbes.com
