In a report released today, Mark Murphy from J.P. Morgan maintained a Buy rating on Salesforce, with a price target of $365.00.
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Mark Murphy has given his Buy rating due to a combination of factors that highlight Salesforce’s promising future outlook. One of the key reasons is Salesforce’s ambitious long-term financial framework, which aims for over $60 billion in total revenue by FY30, translating to a 10%+ organic total revenue CAGR for FY26-FY30. This framework challenges the bearish perspective of slowing revenue growth and suggests potential margin improvements, indicating a shift towards sustainable double-digit growth.
Furthermore, Salesforce’s focus on reaccelerating bookings through metrics like annual order value (AOV) and net-new AOV (NNAOV) is expected to drive gradual revenue inflection over time. The company’s alignment around these metrics signifies a strategic approach to enhancing performance, which, if successful, could lead to positive shifts in revenue trends. These elements collectively contribute to a positive narrative around Salesforce’s business model, supporting the Buy rating.
Murphy covers the Technology sector, focusing on stocks such as Zoom Video Communications, Salesforce, and Workday. According to TipRanks, Murphy has an average return of 11.0% and a 58.45% success rate on recommended stocks.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $400.00 price target.