Take profits in Salesforce.com (CRM), Wedbush Morgan analyst Michael Nemeroff advises.

Nemeroff this morning cut his rating on CRM to Sell from Hold, noting that the shares at last night’s close of $37.38 were more than $10 above his $27 target price. His view is that the company’s small and medium-sized customers “could continue to be pressured by negative economic headwinds and that subscriber attrition at existing larger customers could continue to increase over the next 1-3 years due to shelf-ware reductions from multi-year agreements coming up for renewal.”

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Salesforce.com (CRM) shares are trading higher this morning after Citigroup’s Brent Thill raised his rating on the stock to Buy from Hold, while maintaining a $70 price target. Thill notes that the stock had dropped 13 percent in the three days after the company reported earnings, “even after short-covering.” He notes that the company trades at 24.1 times calendar 2009 free cash flow per share, a reasonable valuation given expected 30 percent annual growth through 2010. He also notes that September and October are seasonally the strongest months for CRM’s stock. Thill notes that the stock trades at about 4.4 times enterprise value/sales, only a slight premium to the median enterprise software multiplier of four, despite expected 2009 revenue growth of 34 percent, versus 11 percent for the group.

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