Salesforce.com Inc (NYSE:CRM) is trading lower Wednesday following bearish analyst coverage from UBS.
UBS analyst Karl Keirstead downgraded Salesforce from a Buy rating to a Neutral rating and lowered the price target from $315 to $265.
Kierstead expressed concerns that more "front-office/sales and marketing" technology spend was pulled forward over the last two years than most investors think.
As a result, the UBS analyst thinks the company's growth rate in 2022 could come under pressure.
If Salesforce experiences "more modest" growth in 2022, the current valuation is "reasonable but not compelling," even with an improving margin story, according to Keirstead.
Related Link: UBS Downgrades Salesforce.com To Neutral; Slashes Price Target By 16%
Salesforce provides enterprise cloud computing solutions, including Sales Cloud, the company's main customer relationship management software-as-a-service product.
CRM Price Action: Salesforce has traded as low as $201.51 and as high as $311.75 over a 52-week period.
The stock was down 5.65% at $234.20 at time of publication.
Photo: courtesy of Salesforce.
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