Canaccord Reiterates BUY on Salesforce.com ($CRM)

Investors overreacted to what some perceived as an equivocal October quarter.  We argued, for awhile unsuccessfully, that they were wrong. CRM’s January
upside in cash flow, customer wins and the highly approximate “calculated billings” figure should dismiss fears that 2011 marked the end of the SaaS, platform and social enterprise road for the firm. In a risk on/growth tape, we believe CRM could see $175-200 this year, although our target is a bit more conservative and assumes $170. Reiterate BUY.

  • A blowout quarter: 57% calculated billings growth,
  • 45% operating cash flow growth
  • fastest revenue growth since 2008.

The company reported year over year growth of 38% on revenue of $632M.  They were $.03 per share ahead of estimates ($.43/share).  Management has raised guidance on the heels of a strong fourth quarter of bookings and is forecasting revenue to come in at $2.95 billion.