Cloud computing solutions helped the high-tech world to continue churning throughout the COVID-19 pandemic. Many industries had already been transitioning toward cloud-based support, and Salesforce.com, Inc. (CRM) was there to pick up the slack once platforms aiding work-from-home became a staple for enterprises. The customer relationship management software firm is expected to release its June quarterly earnings results today, Wednesday, after market close. (See Salesforce.com stock charts on TipRanks)
Providing his bullish sentiments on the stock is Daniel Ives of Wedbush Securities, who wrote that in the long-term, the “trend around cloud is a massive market for cloud transitions and digital transformation initiatives for CRM as the company continues to be front and center on many of these projects in both the public and enterprise sectors.”
Ives maintained his Buy rating for Salesforce.com and reasserted his price target of $300. This target represents a possible 12-month upside of 15.54%.
Salesforce has been strong in diversifying its customer base and product portfolio. Calling it the “bellwether into a golden age of cloud growth,” Ives expects the ongoing SaaS spending trends to keep supplying Salesforce with business well into the future.
The acquisition of Slack has recently closed after about a year since its announcement. The five-star analyst opines that the deal was made to allow Salesforce to keep up with Microsoft (MSFT) and its mighty Office 365 and Azure platforms. He added that the high-profile acquisition was a gamble, and has put pressure on the company for shareholders.
On TipRanks, CRM has an analyst rating consensus of Strong Buy, based on 23 Buy and 5 Hold ratings. The average Salesforce.com price target is $280.78, suggesting a possible 12-month upside of 8.13%. The stock closed trading Tuesday at a price of $259.66 per share.
Disclosure: At the time of publication, Brock Ladenheim did not have a position in any of the securities mentioned in this article.
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