The equity earned at least three price-target hikes this morning
Salesforce.com, inc. (NYSE:CRM) is down 2.6% at $289.11 at last check, brushing off three price-target hikes, including ones from Jefferies and BofA Global Research to $360 from $325 and $330, respectively, which is a 28% premium to last session's close. The analyst at Jefferies said a partner survey suggested the pandemic is driving sustained demand for
digital transformation, with 55% of respondents noting their pipelines improved in the last three months.
While the security has cooled from its Nov. 9, all-time high of $311.75 in recent weeks, it looks like it could could still add to its 29.9% year-to-date lead over the next few weeks, as this latest pullback has placed the equity near a key trendline with historically bullish implications.
More specifically, Salesforce.com stock just came within one standard deviation of its 40-day moving average, after a long time spent above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, at least seven similar signals were seen over the last three years. CRM enjoyed a positive return one month later in 86% of cases, averaging a 3.9% gain. From its current perch, a comparable move would place the security back above $300 -- just shy of its record peak.
What's impressive about today's bull notes is that analysts were already firmly bullish towards Salesforce.com stock, with 24 of the 27 in question carrying a "buy" or better rating, while the remaining three said "hold." Plus, CRM's 12-month consensus target price of $324.34 is an 12.2% premium to current levels.