Analysts’ Top Technology Picks: Salesforce.com (CRM), RumbleON Inc (RMBL)

By Carrie Williams

There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Salesforce.com (CRMResearch Report) and RumbleON Inc (RMBLResearch Report) with bullish sentiments.

Salesforce.com (CRM)

Nomura analyst Christopher Eberle maintained a Buy rating on Salesforce.com on August 9 and set a price target of $180. The company’s shares closed last Monday at $140.72.

Eberle observed:

“We see a lot of noise that must be sorted through this quarter, following the CRM.org, DATA, and, more recently, ClickSoftware acquisitions, as well as multiple FY guidance revisions. We see difficult comps in both F2Q and F3Q, as we expect Y/Y revenue growth of approx. 20% versus 27.5% Y/Y growth in F3Q19, after closing the MULE acquisition. F3Q20 estimates are somewhat in line with historical expectations, with slightly above Q/Q growth of ~6% vs. the historical average of 4.6%. We continue to highlight the uncertain impact of the moving pieces created via recent acquisitions and proposed acquisitions (such as ClickSoftware).”

According to TipRanks.com, Eberle is a 3-star analyst with an average return of 2.1% and a 55.6% success rate. Eberle covers the Technology sector, focusing on stocks such as Tenable Holdings Inc, PROS Holdings, and Cloudera Inc.

Salesforce.com has an analyst consensus of Strong Buy, with a price target consensus of $182.55, representing a 29.0% upside. In a report issued on July 29, Cowen & Co. also reiterated a Buy rating on the stock with a $185 price target.

See today’s analyst top recommended stocks >>

RumbleON Inc (RMBL)

B.Riley FBR analyst Lee Krowl maintained a Buy rating on RumbleON Inc yesterday and set a price target of $9. The company’s shares closed last Monday at $4.65, close to its 52-week low of $3.95.

Krowl said:

“RumbleOn (RMBL) reported a mixed 2Q with revenue 3Q guidance slightly below our/consensus estimates. By segment, both Powersports and Autos outperformed our revenue expectations, especially the Autos segment. EBITDA was below our estimates due to the mix shift to lower GPU Autos segment along with elevated SG&A. Management indicated that they expect flat Q/Q revenue growth in 3Q with a focus on enhancing the profitability of the company driven by optimizing away from less profitable inventory. We intend to update our estimates and thesis after the company’s conference call at 5:30am PT on Tuesday (8/13), and our follow-up with management. *Closing price on 8/12/19.”

According to TipRanks.com, Krowl is a 5-star analyst with an average return of 38.3% and a 66.7% success rate. Krowl covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Rubicon Project.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for RumbleON Inc with a $9.50 average price target, a 103.1% upside from current levels. In a report issued on July 30, JMP Securities also initiated coverage with a Buy rating on the stock with a $10 price target.

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