Salesforce (CRM) revealed that Sonos, a sound experience company, is using Salesforce software to transform its digital shopping capabilities and deliver more personalized customer experiences. CRM shares increased 1.1% to close at $230.56 on April 21.
Hit hard by the COVID-19 pandemic, many of Sonos’ (SONO) retail partners closed down. On the other hand, the company experienced a spike in multi-room wireless home audio system demand amid stay-at-home orders.
Therefore, with the help of the Salesforce platform, Sonos was able to cater to this huge consumer demand digitally. This led the direct-to-consumer business to surge by 84% year-over-year.
Service Cloud, Salesforce CEO Clara Shih said, “Service is no longer just about solving problems — it’s about building trust and proactively delivering great experiences to create lifelong relationships with customers. Sonos is making data-driven customer service a priority by providing their service agents with the context and insights to deliver the best experience from anywhere.” (See Salesforce stock analysis on TipRanks)
On March 8, Goldman Sachs analyst Kash Rangan reiterated a Buy rating and a price target of $315 (36.6% upside potential).
According to Rangan, Salesforce is well-positioned to reap the benefits after spending on digital transformation, which is likely to surpass the overall IT budget for the “foreseeable future.”
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 17 Buys versus 6 Holds. The average analyst price target of $273.91 implies 18.8% upside potential to current levels. Shares have increased 49.6% over the past year.
TipRanks data shows that financial blogger opinions are 89% Bullish on CRM, compared to a sector average of 67%.
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