Followers | 689 |
Posts | 143817 |
Boards Moderated | 35 |
Alias Born | 03/10/2004 |
Tuesday, May 05, 2020 2:12:17 PM
By: TheStreet | May 5, 2020
Rosenblatt Securities initiated coverage of Salesforce (CRM) and Workday (WDAY) with sell ratings, expressing concern about growth for the business-software companies.
Shares of Salesforce, San Francisco, at last check were up 1.4% to $163.72, while Workday, Pleasanton, Calif., was 2.1% higher at $151.62.
Analyst Yun Kim said in a note to clients that Salesforce "currently enjoys a de facto enterprise standard status in the enterprise business application market."
"This has led to an increasing number of large enterprise standardization deals, which has been a key driver behind its stellar 20%-plus annual revenue organic growth track record," said Kim, who set a share price target of $120.
"However, with our industry checks indicating large scale business application deployment is becoming a lower priority among large organizations, we expect large deal activity to slow even after the IT spending rebounds."
Kim also said that with the February departure of Co-Chief Executive Keith Block, he was wary that some key sales executives that are close to him may also depart.
"This possibility could impact its large deal execution since many of them were instrumental in building and scaling a sales organization that could close large strategic deals," he said.
Regarding Workday, Kim said that since the coronavirus pandemic "started to impact the current IT spending environment, we are seeing large-scale business application deployment plans and even some ongoing projects being downsized significantly or even canceled."
"Hence, we believe when the overall enterprise IT spending returns, spending on this type of large business standardization projects, including [human capital management], will lag other initiatives (such as cloud infrastructure management and cloud-based security deployments) that are likely to receive higher priority," the analyst said.
Kim added that while Workday "has grown its international business from 18% of new [annual contract value] bookings in fiscal 2015 to 27% last year, ... the growth in the international markets carry a higher execution risk and the growth may not be as scalable given the country-specific requirements that need to be incorporated and updated constantly into its HCM solution."
"We also remain wary of a highly competitive medium enterprise market segment, which has historically been price-sensitive and more payroll driven," he said.
Kim set a price target of $110 a share on Workday.
Read Full Story »»»
DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Recent CRM News
- Nike Shares Surge 7% Pre-Market as Elliott Hill Becomes CEO; FedEx Shares Tumble 13% After Profit Miss • IH Market News • 09/20/2024 10:02:58 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/18/2024 09:28:06 PM
- Salesforce and NVIDIA Forge Strategic Collaboration to Advance AI Agent Innovation • Business Wire • 09/17/2024 08:30:00 PM
- Salesforce Expands Partnership with Saks Fifth Avenue • Business Wire • 09/17/2024 12:00:00 PM
- Salesforce Data Cloud Momentum Soars with Rising Adoption and New Innovation That Brings Trusted Data to Agentforce • Business Wire • 09/17/2024 12:00:00 PM
- Salesforce and Google Cloud Join Forces to Deliver Autonomous AI Agents That Collaborate Across Salesforce and Google Workspace • Business Wire • 09/17/2024 12:00:00 PM
- Salesforce Introduces Agentforce Partner Network — The World’s First Agent Ecosystem • Business Wire • 09/17/2024 12:00:00 PM
- Salesforce Gives $23M to Education to Help the AI Generation Unlock Critical Skills • Business Wire • 09/16/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 08:35:30 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/12/2024 08:32:03 PM
- Salesforce Unveils Agentforce–What AI Was Meant to Be • Business Wire • 09/12/2024 08:30:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/11/2024 08:25:04 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 09/11/2024 08:04:16 PM
- Alation to Strengthen Data Trust and Governance in Salesforce Data Cloud • GlobeNewswire Inc. • 09/10/2024 01:04:00 PM
- Broadcom Down 10% Post-Earnings, UiPath Up 8%; Qualcomm Eyes Intel Assets; Salesforce Acquires Own Company • IH Market News • 09/06/2024 11:59:00 AM
- Salesforce Announces Quarterly Dividend • Business Wire • 09/06/2024 12:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 09/05/2024 08:36:44 PM
- Salesforce Signs Definitive Agreement to Acquire Own Company • Business Wire • 09/05/2024 08:35:00 PM
- Nvidia Subpoenaed by DOJ, Athira Pharma Shares Plunge 71% After Study Fails, Zscaler Falls 15% Post-Earnings • IH Market News • 09/04/2024 09:50:25 AM
- Interest Rate Optimism May Overshadow Negative Reaction To Nvidia Results • IH Market News • 08/29/2024 01:06:24 PM
- Nvidia, HP, Okta, Pure Storage Drop Post-Earnings; Salesforce, Nutanix, Affirm Surge • IH Market News • 08/29/2024 10:09:21 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 08/28/2024 10:25:21 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/28/2024 08:02:42 PM
- Salesforce Announces Second Quarter Fiscal 2025 Results • Business Wire • 08/28/2024 08:01:00 PM
- U.S. Futures Edge Up as Nvidia Earnings Loom, Oil Prices Slide • IH Market News • 08/28/2024 09:52:22 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM