Maintaining Buy Rating and $83 Target on Salesforce Following Earnings

5/22 - "We believe over the long term, Salesforce.com, Inc. (CRM), which consistently beats Wall Street expectations, will emerge as the leader in a potentially huge market for on-demand software. The business-software maker has had strong traction in the larger enterprise market and has partnered with Google (GOOG) to serve small businesses...A steady and gradual improvement in large deals, including recent ones like Accenture (ACN) and Merrill Lynch (MER), already brings the company higher revenue visibility than its peers."

"Traditionally, leading software providers trade in a range of 5x to 15x revenue. The stock currently trades at a P/S multiple of 7.0x, but we believe the stock can approach a multiple of at least 9x revenue over the long-term as the leader in the space. We therefore maintain a Buy rating and a price target of $83 on the stock."