If Salesforce.com Is a Buyout Target, These 5 Stocks May Be Too
The recent chatter that Salesforce.com Inc. (NYSE: CRM) might be a target for a huge tech company looking to get a very large foot in the customer relationship management (CRM) door really should come as no surprise. Tech analysts have speculated for years that one day the stock would be a target. While the usual denials are there, where there is smoke, there is usually fire.
In a new report, Cowen analysts think that Oracle Corp. (NASDAQ; ORCL) and Microsoft Corp. (NASDAQ: MSFT) are likely candidates to buy the company, and the analyst comes up with a potential takeout price of $94 per share. We recently looked at the possibilities of those two companies making a bid as well.
We looked through the rest of the companies that are active in the software-as-a-service business and found a rather interesting list of five companies that could step right up to the plate as takeover candidates if Salesforce.com is acquired. We focused on companies that are in the CRM arena and offer product lines that could prove interesting to acquirers.
Amdocs Ltd. (NASDAQ: DOX) is a customer management software company that provides billing and customer relationship management software and services for communications, media and entertainment industry service providers worldwide. With revenue of $3.6 billion in fiscal 2014, Amdocs has more than 22,000 employees who serve customers in over 80 countries. The Thomson/First Call consensus price target for the stock is $54.40. The stock closed Thursday at $55.07.
NICE Systems Ltd. (NASDAQ: NICE) is the worldwide leading provider of software solutions that enable organizations to take the next best action in order to improve customer experience and business results, ensure compliance, fight financial crime and safeguard people and assets. NICE’s solutions empower organizations to capture, analyze and apply, in real time, insights from both structured and unstructured big data. The consensus price target is $59.78, but shares closed Thursday at $59.85.
NetSuite Inc. (NYSE: N) has established itself as the leading provider of enterprise-class cloud financials/ERP, CRM and omnichannel software suites for mid-sized organizations, large enterprises and divisions of large enterprises seeking to upgrade their antiquated client/server ERP and other systems. NetSuite continues its success in delivering the best cloud ERP/financials suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud is accelerating. The consensus price objective is posted at $105.92. Shares closed most recently at $95.57.
Verint Systems Inc. (NASDAQ: VRNT) is a global leader in actionable intelligence, which has become a necessity in a dynamic world of massive information growth. By empowering organizations with crucial insights, Verint solutions enable decision makers to anticipate, respond and take action, and make more informed, effective and timely decisions. The company’s solutions are designed to address three important areas of the actionable intelligence market: customer engagement optimization; security intelligence; and fraud, risk and compliance. The consensus price target is $69.25. Shares closed Thursday at $61.43.
Workday Inc. (NASDAQ: WDAY) is a leading provider of enterprise cloud applications for finance and human resources. Founded in 2005, Workday delivers financial management, human capital management and analytics applications designed for the world’s largest companies, educational institutions and government agencies. Hundreds of organizations, ranging from medium-sized businesses to Fortune 50 enterprises, have selected Workday. The consensus price target for the stock is set at $103.21. Shares closed Thursday at $91.21.
While it is possible that none of the stocks we covered will be acquired, one thing is for sure, big tech is looking for big CRM and other acquisitions to grow business. If Salesforce.com is acquired, there is every reason to think that these companies could get a strong look.