While most of Wall Street is out defending salesforce.com (
) following Q3 results after the close, one wasn't.
In a somewhat scathing report, JPMorgan slashed its price target on
the CRM leader from $125 to $116 in a report entitled "Slowing
Business Momentum." The firm maintained their Neutral rating.
The firm straightforwardly said that the weak billings indicate
slowing business momentum. "While there were several reasons for
this given on the call, it seems to us that the apparent conclusion
is probably the right one - business momentum slowed," said John
While he still considers CRM a well run company, there are clear
signs that "growth is waning". Citing examples of this, DiFucci
noted new subscription billings growth dropped dramatically to 12%
versus the 34% growth implied in consensus numbers. Total
subscription billings growth declined to 28% versus the 37% growth
implied in consensus.
Sending a message to investors, DiFucci said the stock is not
priced for this slowing growth.
For an analyst ratings summary and ratings history on
. For more ratings news on salesforce.com
Shares of salesforce.com are down 9.7 percent early Friday to