Salesforce shares fall, sell-off continues
2022.12.02 09:46
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Salesforce shares fall, sell-off continues
Budrigannews.com – Portions of Salesforce (NYSE:) are expected to open lower on Friday after analysts at Wolfe Research downgraded from Outperform to Peer Perform in response to yesterday’s results.
Growth is “materially decelerating following a Covid pull-forward, execution missteps, and M&A misfires creating meaningful idiosyncratic headwinds,” as the analysts saw results that changed the thesis.
In a client note, they stated, “That thesis has changed with growth materially decelerating to implied LSD bookings growth in 4Q, new bookings this year declining 53%, and a high single digit top line growth estimate for next year with low teens FCF growth.”
After ten years of giving CRM stock a Buy-equivalent rating, the analysts decided to remain neutral.Salesforce is entering “a new and difficult chapter,” according to the analysts.
They believe that Salesforce shares are fairly valued at $115-135, so they dropped the $160 price target.
Shares of Salesforce ended the day at $147.00, down more than 8.2%.
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