Salesforce’s “momentum appears unstoppable,” he says. He sees a near-term catalyst in the the company’s user conference October 8-11 in San Francisco. “A key longer term positive is a strong and improving competitive position that is made even stronger by the company’s embrace of multi-tenancy and its AppsExchange initiative, both of which facilitate rapid innovation.” He raised his target on the stock to $43 from $40.
For RightNow, Schneiderman increased his profit forecast for the full year to 8 cents a share from 6 cents. He also notes that his third quarter revenue estimate of $29.5 million is about $1 million above the consensus view; his profit forecast of four cents a share is two pennie above consensus. Schneiderman says he has been “genuinely impressed” with the reaction to the the new Version 8 of of its core software. He raised his target on the stock to $20 from $18, and says the company is his top pick in enterprise software.
“The data supports the view that sector demand is healthy for the customer-service segment of CRM,” he writes. “Virtually every publicly-traded vendors focused on the segment is showing good revenue growth over the past year.