Gets a Hold Rating from Pivotal Research

By Ryan Adsit

Pivotal Research analyst Brian Wieser maintained a Hold rating on (NYSE: CRM) today and set a price target of $116. The company’s shares closed yesterday at $116.25, close to its 52-week high of $118.15.

Wieser said:

“We previously forecast +23.5% revenue growth for 4Q18 and adjusted margin of 13.3% vs. consensus of +22.5% and margins of 13.8%. Unbilled deferred revenue (representing business that is contracted but unbilled and off-balance sheet) ended the fourth quarter at approximately $13.3 billion, up 48% year-over-year. For the year the company ended up with revenue growing +24.9% and adjusted margins of 14.5%, which compared with 13.2% margins in the year-ago period. The company also provided more specific 2019 guidance, calling for 20-21% revenue growth, roughly consistent with our prior expectations slightly above this range and featuring operating income margin expansion of 125 to 150bps. 16.0%. However, EPS guidance for 2017 was better than our prior $1.89 estimate, in part on a lower-than-expected tax rate. Guidance calls for a $2.02 to $2.04 range, and our model’s new figure is slightly above this level.”

According to, Wieser is a 5-star analyst with an average return of 10.9% and a 72.8% success rate. Wieser covers the Services sector, focusing on stocks such as Interpublic Group of Companies, Publicis Groupe SA, and Nielsen Holdings. has an analyst consensus of Strong Buy, with a price target consensus of $129.79.

Based on’s latest earnings report for the quarter ending October 31, the company posted quarterly revenue of $2.68 billion and quarterly net profit of $51.39 million. In comparison, last year the company earned revenue of $2.29 billion and had a GAAP net loss of $51.44 million.

Based on the recent corporate insider activity of 444 insiders, corporate insider sentiment is negative on the stock.

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