Benzinga | Jan 5, 2022 05:48AM EST

UBS Downgrades Salesforce.com To Neutral; Slashes Price Target By 16%

* UBS analyst Karl Keirstead downgraded Salesforce.com Inc (NYSE:CRM) to Neutral from Buy with a price target of $265, down from $315. The price target implies an upside of 6.7%.

* After speaking to large enterprise IT executives and services partners of Salesforce, the analyst is concerned that more "front-office/sales and marketing" technology spend was pulled forward in 2020 and 2021 than most investors think.

* This dynamic could pressure Salesforce's growth rate in 2022, Keirstead adds.

* Given the risk of "more modest growth rate upside" in 2022, the stock's valuation is "reasonable but not compelling," even with an improving margin story, Keirstead notes.

* Price Action: CRM shares closed lower by 2.83% at $248.23 on Tuesday.