FBR Reiterates Salesforce Outperform After Seeing 'Momentum' In Europe

In a report published Monday, FBR Capital Markets analyst Samad Samana maintained an Outperform rating on salesforce.com, inc. (NYSE: CRM), with a price target of $82, after recent checks showed strong momentum in Europe.

Salesforce's business momentum continued to be strong and the company's strong performance in EMEA could "drive upside to current estimates," analyst Samad Samana said.

Samana expects the company's growth to be driven by plenty of new business opportunities, increased demand for Marketing cloud in EMEA and an increase in the salesforce.com focused practices of the partners.

In the report FBR Capital Markets noted, "…our checks lead us to believe constant currency-based revenue in EMEA will continue to grow rapidly in FY16 and FY17…EMEA represents just under 20% of salesforce.com's revenue, and the ~$1 billion annual revenue run-rate is only a fraction of Oracle's and SAP's application revenue in the region.

Samana believes that the company has merely "scratched the surface of its revenue opportunity in EMEA," while stating that the recent checks suggested "the company is experiencing healthy demand, executing well, and taking market share from its rivals."