Salesforce (CRM) continues to strengthen its Sales Cloud offering, a key driver of its growth strategy. Further, Bank of America Securities analyst Bradley Sills has reiterated a Buy rating, citing multiple factors that could push Sales Cloud’s growth rate from its current 9-10% to a sustainable 12%.
Protect Your Portfolio Against Market Uncertainty
- Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter.
- Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Also, the analyst has assigned a price target of $350 on CRM stock, which implies an upside of 27.1% from the current level.
Factors that Could Drive Sales Cloud Growth
Sales Cloud serves as Salesforce’s main customer relationship management system, and its market dominance is likely to continue. The analyst cited Gartner’s data, which suggests that Sales Cloud will maintain a 25% market share in the $39 billion Sales CRM industry through 2027.
The company’s integrated platform, AI tools, and business intelligence allow it to capture industry growth. Further, Sills noted that high-priced products like Industry Cloud and Revenue Cloud, plus a growing user base with Agentforce, are also driving expansion.
Apart from Sills, a five-star analyst, Jefferies analyst Brent Thill is also bullish on CRM stock. He recently maintained a Buy rating on Salesforce with a price target of $375 (implying 36.2% upside).
Is CRM a Good Stock to Buy Now?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 32 Buys, eight Holds, and three Sells assigned in the last three months. At $361.24, the average Salesforce stock price target implies a 26.36% upside potential.
