Wedbush analyst Steve Koenig removed Salesforce.com Inc.'s stock from the company's "best ideas" list Wednesday, citing the potential that business customers will show caution about taking on big software commitments due to the COVID-19 pandemic. "Our checks with industry sources point to a pause in digital transformation initiatives such as enterprise [customer relationship management], as companies delay spending decisions in an uncertain economic environment," he wrote. "While spending delays will likely affect application software generally, vendors whose value propositions are primarily oriented to revenue generation (as opposed to cost control, agility/ risk) could be relatively more at risk." Koenig kept his outperform rating on the stock while reducing his target price to $184 from $217. Salesforce shares are off 4% in premarket trading Wednesday, and the stock has lost 16% over the past month as the S&P 500 has lost 12.5%. Read More...
Wedbush analyst Steve Koenig removed Salesforce.com Inc.’s stock from the company’s “best ideas” list Wednesday, citing the potential that business customers will show caution about taking on big software commitments due to the COVID-19 pandemic. “Our checks with industry sources point to a pause in digital transformation initiatives such as enterprise [customer relationship management], as companies delay spending decisions in an uncertain economic environment,” he wrote. “While spending delays will likely affect application software generally, vendors whose value propositions are primarily oriented to revenue generation (as opposed to cost control, agility/ risk) could be relatively more at risk.” Koenig kept his outperform rating on the stock while reducing his target price to $184 from $217. Salesforce shares are off 4% in premarket trading Wednesday, and the stock has lost 16% over the past month as the S&P 500 has lost 12.5%.
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