Salesforce upgraded to Neutral at DA Davidson following underperformance

As previously reported, DA Davidson upgraded Salesforce (CRM) to Neutral from Underperform with an unchanged price target of $225. Salesforce has underperformed the iShares Expanded Tech-Software Sector ETF (IGV) by 27 points since it reported fiscal Q1 results on May 28 and by 48 points year-to-date, notes the analyst, who believes investor sentiment having declined is “appropriate” for a business with decelerating organic growth in its core business and mounting competitor pressure. However, Starboard increased its stake in Salesforce by 47% this quarter and “another round of activist involvement may help the company correct course,” the analyst added.