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Deutsche upgrades Microsoft/Oracle, downgrades Salesforce/Citrix

  • Following a transfer in analyst coverage, Deutsche has upgraded Microsoft (MSFT), Oracle (ORCL), and Conqur (CNQR) to Buy, and downgraded Salesforce (CRM) and Citrix (CTXS) to Hold.
  • Analyst Karl Keirstead, formerly at BMO, likes Microsoft's valuation, thinks (like Evercore) the company doesn't get enough credit for its enterprise ops amid PC concerns, and is hopeful a new CEO will cut costs.
  • Regarding Oracle, Keirstead thinks concerns about share loss to cloud app providers are priced in at a valuation of 11x 2015E EPS, and thinks app weakness can be offset by database strengths. It's worth noting some think database sales will also be pressured by cloud adoption.
  • Keirstead believes "the near-term set-up is not ideal" for Salesforce, even if the company remains "an attractive medium-term play on the cloud computing trend." He cites slowing organic billings growth, Japanese weakness, and the major sales leadership overhaul carried out ahead of Salesforce's pivotal January quarter.
  • MSFT +0.7% AH. ORCL +0.7%. CRM -0.4%. CTXS -0.7%.
Comments (5)
  • crm! no way! please say it ain't so...it can't be...after all crm is amazing!
    22 Jan, 07:20 PM Reply Like
  • "Analyst Karl Keirstead, formerly at BMO, likes Microsoft's valuation, thinks (like Evercore) the company doesn't get enough credit for its enterprise ops amid PC concerns..."

     

    Anybody who can do basic math should feel the same way...
    22 Jan, 09:04 PM Reply Like
  • Deutsche downgrades CRM from Buy to Bagholder, while the insiders sell as much as they can as fast as they can.
    22 Jan, 09:42 PM Reply Like
  • They upgraded Microsoft a day before earnings?!
    22 Jan, 10:25 PM Reply Like
  • CRM does not have any real barriers to entry and Microsoft basically duplicated their service with Microsoft Dynamics CRM. I've had the impression for some time now that MSFT is cutting into CRMs market share. However, we'll have to wait and see what the earnings look like.
    22 Jan, 10:35 PM Reply Like
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