On Tuesday, January 9th, Salesforce (CRM) broke through its all-time high set back on November 21st. It has now comfortably past our target of $108 set back on December 19th. Given the recent run-up in the stock price and the equity markets in general, we now believe fiscal Q4 2018 results and Q1 2019 guidance beats are being fully accounted for in the stock price. This is based on CRM’s historical EV/EBITDA valuation, its CLTV/CGC relative valuation and CRM’s high r-squared with the NASDAQ Composite.
We believe investors should stop accumulating shares of CRM above $108.
We continue to monitor CRM’s competitive position, the customer relationship management market and its valuation in order to find the next high conviction trading opportunity.
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For the purposes of complying with NYSE, NASDAQ and all Self-Regulatory Organizations, Perspectec Inc. has assigned the following rating system BUY, HOLD/NEUTRAL, SELL for the securities which are the views expressed by an analyst, Independent contractor, and or an employee of Perspectec Inc. The information and opinions in these reports were prepared by Perspectec Inc. or an analyst, independent contractor. Though the information herein is believed to be reliable and has been obtained from public sources believed to be reliable. Perspectec Inc. makes no representation as to its accuracy or completeness.
