Guggenheim analyst John Difucci has maintained their neutral stance on CRM stock, giving a Hold rating today.
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John Difucci has given his Hold rating due to a combination of factors affecting Salesforce’s performance. The company’s recent revenue and subscription figures slightly exceeded consensus expectations, but the growth metrics, particularly the new Annual Contract Value (ACV), showed a decline. This decline occurred despite the period being the easiest comparison of the year, raising concerns about the company’s growth momentum.
Additionally, while the constant currency revenue guidance for the upcoming quarter aligns with market expectations, the growth in current remaining performance obligations (cRPO) fell short. Although the annual guidance was adjusted upwards, largely due to favorable foreign exchange rate changes, the subscription growth targets appear challenging. Management’s emphasis on accelerating growth did not convincingly address the deceleration in subscription growth, leading to a cautious outlook reflected in the Hold rating.
In another report released today, UBS also maintained a Hold rating on the stock with a $300.00 price target.
Based on the recent corporate insider activity of 230 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRM in relation to earlier this year.