Here’s The Reason Why Salesforce Shares Are Exploding

Salesforce shares were on the move this week after a Jefferies analyst upgraded the stock.

According to analyst John DiFucci of Jefferies, Salesforce could see a 20% rally.

The analyst has upgraded the stock to “buy” and increased his price target on the stock to $132 from $97.
DiFucci has said that the company’s “consistently strong” enterprise growth and customer demand will push shares higher by over 20%.

He noted, “We see many engines of growth for the company over the long-term as it continues to expand in multiple segments. The company’s customer-centric and vertical-focused approach to enterprise penetration has been key to its success, which we expect to continue into the future.”

He also wrote, “Heightened competitive pressures from Microsoft, which we started observing in the August quarter of 2016 for five survey rounds, may have waned for a couple of quarters. In five consecutive survey rounds starting in the August-ended 2016 quarter, we had observed a significant uptick in the percentage of surveyed partners that indicated Microsoft is Salesforce.com’s biggest competitive threat, to about 70 percent or higher, versus 60 percent or lower in historical survey rounds. Since last quarter, however, that percentage dipped has below 60 percent again.”

Shares of the stock are up 38.5% in the last twelve months.

The company is expected to report its fourth quarter earnings on February 28th.

Disclaimer: We have no position in salesforce.com, inc. (NYSE: CRM) and have not been compensated for this article.