Salesforce.com, inc. CRM 0.3% followed up a disappointing Q2 earnings report with a much-needed strong performance in Q3. Shares are up 3.5 percent following the news, and Deutsche Bank analyst Karl Keirstead is bullish on the stock.
According to Keirstead, the weak Q2 followed by rumors of a Twitter Inc TWTR 0.88% buyout provided a buying opportunity for investors in Q3.
Positives
“Coming after a negative 2QF17 print and months of Twitter-related anxiety, merely posting a clean quarter with an in-line or better guide is enough to restore confidence,” Keirstead explained.
He believes the company’s fresh guidance implying an acceleration in billings growth to 25 percent in Q4 suggests Q2 was simply a bump in the road. Deutsche Bank is still calling for billings growth of 20 percent in fiscal 2018.
He also mentioned Q3 deals with Amazon.com, Inc. AMZN 0.03%, PNC Financial Services Group Inc PNC 0.84% and Citigroup Inc C 0.16% were all nice additions.
Keirstead also likes the positive tone on growth that CEO Keith Block had in the earnings call.
One Negative
On the other hand, Keirstead notes…
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