Salesforce.com (CRM) Flat After Analysts Duel On Valuation

Shares of Salesforce.com (NYSE: CRM) are flat today following mixed analyst comments today. On one hand, Citigroup upgraded shares of Salesforce to Buy citing valuation. On the other hand, KeyBanc raised concerns about sales deceleration at the company.

In its upgrade, Citi's analyst said, "With attractive valuation mitigating potential risks, and C2H08 bringing positive stock and business seasonality, further combined with continuing themes of international adoption and op margin break-out, we are confident in upgrading CRM to a Buy rating and reiterating our $70 TP."

KeyBanc said Salesforce.com reported that gross deferred sales commission expense (+22% year-over-year) grew at its slowest pace in three years, while sales and marketing headcount growth (+35% year-over-year) grew at less than 40% year-over-year for the fourth consecutive quarter. KeyBanc said at the current valuation, deceleration in sales is a concern and therefore is maintaining their Hold rating.

Shares of Salesforce.com are currently trading at $56.46, with a 52-week range of $39.38-$75.21.

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