Below is a summary of our stock calls for our General Tech Portfolio. Our selections are based on: Relative, non-traditional and traditional valuations that vary depending on its sub-industry A company’s pipeline for innovation satisfying demand The impact of select index funds as a proxy for all funds Other factors that we deem important to a particular stock price. Rating # of Stocks BUY 15 HOLD 100 SELL 43 Below is a list of our stock ratings as of June 18th, 2019.
Software Provider
7 posts
We have updated our coverage list in order to better match our research to interest from investors. We now track the following equities in the technology space: 1-800-Flowers.com FLWS 2U TWOU 3D Systems DDD 8×8 EGHT ACI Worldwide ACIW Activision Blizzard ATVI AcuityAds ACUIF Adobe ADBE Alarm.com ALRM Alphabet GOOGL Altair Engineering ALTR Alteryx AYX Amazon.com AMZN Anaplan PLAN Ansys ANSS AppFolio APPF Apple AAPL Atlassian TEAM Appian APPN AutoDesk ADSK Automatic Data Processing ADP Avalara AVLR Bandwidth BAND Benefitfocus BNFT Black Knight BKI Blackbaud BLKB Blackberry BB Blackline Safety BLKLF Bottomline EPAY Box BOX Cadence Design Systems CDNS Carbon […]
We have launched coverage of 14 additional enterprise software companies. Our models use a combination of SaaS metrics and non-GAAP financials to predict the current stock price. The relationship with our Enterprise focused model and the current stock prices (adjusted r-square) is 0.87 and for companies with an SMB/Entrepreneur focus our model has an adjusted r-square of 0.68. The performance of these stocks will be tracked in the Perspectec General Portfolio. In addition, we are moving Salesforce.com (CRM) from our Focused Portfolio to our General.Portfolio, due to a change in associate coverage. With this launch, we have published our Enterprise […]
With contributions from Robin Manson-Hing. We have completed our quarterly analysis of Salesforce’s major product lines and have seen some changes on where Salesforce sits in relation to its competition. This analysis does not include MuleSoft’s Anytime Platform or MuleSoft’s impact to Salesforce’s financials. Market position for Sales Cloud and Marketing Cloud moves lower – We track CRM’s market position every quarter using a market competitiveness model. Over the last quarter, we found Sales Cloud and Marketing Cloud to have moved lower since our last report primarily due to lower interest in their solutions. While the price hike for Sales Cloud two years ago has been […]
Examining Paycom (PAYC-NYSE) taking a full ‘retrospective adoption approach’ to adopting the new ASC 606 standard, their restating of adjusted EBITDA has driven us to update our EV/EBITDA forecast model. The new standard allows Paycom to defer a materially larger than industry average portion of their sales commissions over the lifetime of its customers. This has caused adjusted EBITDA for 2017 to now be $186 million versus $137 million previously. Our new function involves seven public payroll SaaS companies that have produced an r-squared of 0.863 in forecasting the current EV/EBITDA multiple. The end result is our target EV/EBITDA multiple for Paycom has been reduced from 45x to 36x. Our […]
On Tuesday, January 9th, Salesforce (CRM) broke through its all-time high set back on November 21st. It has now comfortably past our target of $108 set back on December 19th. Given the recent run-up in the stock price and the equity markets in general, we now believe fiscal Q4 2018 results and Q1 2019 guidance beats are being fully accounted for in the stock price. This is based on CRM’s historical EV/EBITDA valuation, its CLTV/CGC relative valuation and CRM’s high r-squared with the NASDAQ Composite. We believe investors should stop accumulating shares of CRM above $108. We continue to monitor CRM’s competitive […]
With Salesforce (CRM-NYSE) finally releasing company-wide dollar attrition last quarter, we can now launch coverage of CRM being more confident in our relative and historical valuation as well as our target price. This is the first in an ongoing series of research examining Salesforce’s business and share price. Salesforce has a number of diverging elements including: – Trading patterns – Relative valuation, growth – Profitability – Competitive position Over the last few years, there has been one steady method of valuation that has been a strong predictor of its share price: an enterprise value based on its trailing 12-month customer lifetime value added over […]