Salesforce (NASDAQ:CRM) might have had a fight on its hands. An activist investor was looking to install some of its own people on Salesforce’s board, but these plans have changed, and investors responded by giving Salesforce a leg up in its share price.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
For a little while, a fight was brewing between Salesforce’s CEO Marc Benioff and Elliott Investment Management. Elliott wanted its own people on Salesforce’s board, and Salesforce would have preferred that not be the case. However, a joint statement issued earlier today said that was no longer an issue and that Elliott suddenly decided not to implant its drones in Salesforce’s operations. This wasn’t the first time activists targeted Salesforce; five of them came after the company back in 2022. But vastly improved performance and rising share prices turned those tides around.
So what turned the tide? A joint statement from Salesforce and Elliott notes that it was a Salesforce plan known as “New Day” that caused Elliott to back off. New Day, coupled with excellent 2023 fiscal year results as well as a set of other “transformation initiatives,” was all Elliott needed to see to back away from plans to seize direct control. Further, managing partner at Elliott Jesse Cohn noted that he had “…great respect for Marc and his team.”
Cohn isn’t the only one who respects Salesforce. Analyst consensus calls Salesforce a Moderate Buy. Furthermore, with an average price target of $223.21, CRM stock comes with 16.48% upside potential.
