Analyst Derrick Wood from TD Cowen maintained a Buy rating on Salesforce and keeping the price target at $335.00.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight Salesforce’s potential for growth and innovation. One of the key reasons is the strength observed in the SMB/Commercial segment, where there is an increase in demand and an acceleration in sales capacity. This is supported by a new head of SMB sales, improved packaging, and faster AI adoption cycles, which position Salesforce favorably against competitors like HubSpot.
Additionally, Salesforce is making significant advancements in its Data and AI capabilities. The company is seeing faster pilot-to-production cycles for its Agentforce platform and is investing in tools that enhance data readiness and integration. Despite some pressures in the Commerce and Marketing segments, Salesforce is focusing on new leadership and strategies to stabilize and eventually grow these areas. Overall, Salesforce’s commitment to innovation and strategic growth initiatives are expected to drive the company back to double-digit growth, justifying the Buy rating.
In another report released on September 25, Citizens JMP also reiterated a Buy rating on the stock with a $430.00 price target.