with its cloud dominance,” the Wedbush analyst said.Ĭhange In Direction: The Slack deal “leaves more questions than answers,” said Raymond James analyst Brian Peterson. “Slack, despite facing stiff competition from Microsoft, has been a clearly successful solution set further penetrating enterprises and thus looks like the natural fit for Salesforce to beef up its collaboration and messaging footprint and keep pace with Nadella & Co. Wedbush analyst Daniel Ives said the Slack deal is Salesforce’s latest effort to keep pace with Microsoft Corporation MSFT. “We think the price tag was steep at $28 billion in total and about $46 per share, based on deal terms of $26.79 in cash and 0.0776 shares of Salesforce common stock,” he said. Morningstar analyst Dan Romanoff said guidance was mixed, but the Slack news clearly stole the show. “A preliminary analysis of a potential Salesforce + Slack proforma model suggests low 20% EPS dilution in CY21, improving to low single digits dilution by CY25,” the analyst said. Earnings Dilution: Morgan Stanley analyst Keith Weiss said Salesforce will likely need Slack to drive between $450 and $500 million in net synergies for the deal to be break-even from an earnings standpoint by 2025.
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