Analyst Keith Weiss from Morgan Stanley maintained a Buy rating on Salesforce (CRM – Research Report) and keeping the price target at $405.00.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Salesforce’s strong market positioning and growth potential. The company has demonstrated robust performance in key investor metrics, particularly with its current remaining performance obligations (cRPO) growing at 11% on a constant currency basis, surpassing both the company’s guidance and investor expectations. This indicates a strong demand for Salesforce’s offerings, despite the adverse impact of currency fluctuations on headline numbers.
Furthermore, Salesforce’s strategic initiatives, such as the Agentforce and DataCloud/AI offerings, have shown significant traction, with over 3,000 Agentforce transactions signed in the quarter and a notable increase in annual recurring revenue. These developments, coupled with the company’s focus on expanding operating margins and maintaining a solid growth trajectory, suggest a promising outlook for Salesforce. At a valuation of 17 times the estimated enterprise value to free cash flow for 2026, there is a clear path for sustained momentum in the GenAI space and further margin expansion, supporting the Buy rating.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $375.00 price target.