Salesforce‘s stock has a lot of runway ahead of it and could easily double within the next three years, tech fund manager Josh Spencer told CNBC on Tuesday.
“This is the biggest position in my fund. It’s close to 15 percent of the fund right now, and I think it’s got a lot of upside over the next several years,” the manager of the T. Rowe Price Global Technology Fund said on “Halftime Report.”
The company has “fantastic top-line growth, a great management team, really well-positioned across cloud software with a number of different clouds that they offer and they’ve just put up the numbers for so long,” he added.
Spencer spoke a day after SunTrust Robinson Humphrey initiated coverage of the company with a buy rating and a price target of $110. SunTrust said investors should buy Salesforce stock in part because it believes the company “can sustain 20-percent-plus top-line growth.”
Terry Tillman, an equity research analyst at SunTrust, said in a note to clients that Salesforce’s service, market and commerce clouds could fuel that overall growth.
Salesforce stock was up about modestly midafternoon Tuesday, and has risen more than 26 percent over the past six months, according to FactSet.
FANG refers to Facebook, Amazon, Netflix and Google’s Alphabet. Some investors also recognize Apple as an additional “A” in the FANG acronym.
“I probably have the highest-weight software sector that I’ve had since I’ve managed the fund … and I have less in the internet sector,” he said.
A major Salesforce shareholder says the stock could double in 3 years