Schaeffer's Trading Floor Blog

Analyst Update: Salesforce.com, Dreamworks SKG, and Campbell Soup

Analysts adjusted their opinions on CRM, DWA, and CPB

by 11/21/2012 11:00 AM
Stocks quoted in this article:

As stocks are perched just above breakeven on Thanksgiving Eve, here is quick update on today's latest brokerage notes, including changes for professional software concern Salesforce.com, inc. (NYSE:CRM - 155.40), motion picture producer Dreamworks Animation SKG, Inc. (NASDAQ:DWA - 18.89), and familiar packaged-food name Campbell Soup Company (NYSE:CPB - 36.20).

  • With third-quarter earnings and revenue edging out the consensus estimate, CRM is up more than 7% today, bringing its year-to-date gain to more than 54%. Bernstein weighed in with a price-target hike, lifting its outlook by $7 to $105. It should be noted, however, that this is well below the stock's current price, and the brokerage maintained its "underperform" rating. Bernstein is in the minority, however; of 32 analysts following the stock, 24 have named CRM a "strong buy," while four assign a "buy" rating.

  • Elsewhere, DWA has dropped about 4% today without any major catalyst to spur the selling. Susquehanna issued a vote of confidence on the stock, in fact, boosting its price target to $19 from $17. Up nearly 14% in 2012, DWA has been targeted by bullish option speculators. The 50-day call/put volume ratio of buy-to-open activity on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands at 7.51, meaning calls have been bought to open at more than seven times the pace of puts. Additionally, this ratio is approaching a yearly peak, as it currently sits in the 92nd annual percentile.

  • Finally, CPB saw its price target hiked to $36 from $32 at Bernstein. The average 12-month price target among analysts stands at $35.00, which is actually a discount to the stock's current price. Any further adjustments could lure retail buyers from the sidelines. CPB shares have outperformed the S&P 500 Index (SPX) by eight percentage points in the last two months, yet have earned just one "buy" rating among 18 covering analysts. This leaves 14 uninspiring "holds" and three "sell" or worse designations.

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