Quashing rumors about a purported takeover of salesforce.com, inc. (NYSE:CRM) by SAP SE (ADR) (NYSE:SAP), people aware of the news mentioned on Friday that the latter is not acquiring its rival, CRM. The press and media houses reported last year that think tank of the two companies had planned strategic alliances in FY2014.
Spokesperson Quashes All Rumors
However, a spokesperson from SAP emailed a comment to media houses stating that there lies no basis on the thoughts that the company had plans to acquire Salesforce.com. Neither is there any basis that the company hasn’t stopped considering the same or not. The truth speaks volumes about the turbulence in thoughts; presumably, the final call is yet to be taken.
Analysts Bullish On CRM
Morgan Stanley (NYSE:MS) has analyzed the earnings and profitability of CRM. Finally, a conclusion has been reached by the analysts at MS that CRM may have good quarterly results in the upcoming days. The firm reiterated its ‘Overweight’ rating for the CRM stocks. The trends show 77% YoY growth expected in Q1FY16, accelerating higher than the Q4 results in Q4FY15. The reports suggest that the relationship between normalized billings and transaction growth has been quite volatile over the last couple of years.
Keith Weiss, analyst at MS believes that the rumors pertaining to the deal shall soon subside, or the deal would materialize eventually. Investors may get an opportunity to refocus on the strength of CRM and underlying profitability in investing in the CRM stocks.
The analysts and investors appear bullish on the CRM stock. In a survey conducted over 48 analysts dealing in Salesforce.com stock, 39 voted firmly for buying the stock. A smaller number of five analysts opted to hold the stock, whereas four voted for selling.
Eyeing The SAP-Deal
Piper Jaffray Companies (NYSE:PJC) and JPMorgan Chase & Co. (NYSE:JPM) weighed in on purchasing CRM stocks, stating that if the deal with SAP materializes, each share prices may shoot up to $100 and more.
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