Shares of customer relationship management software provider Salesforce (NYSE:CRM) soared over 7% at the time of writing, as investors noted the company’s impressive earnings. At the same time, Wall Street analysts appeared impressed, with several investment firms remaining bullish on the stock.
Indeed, JP Morgan joined the flock of bullish firms as it maintained an Overweight rating on the stock and upped its price target from $240 to $260. Analysts led by Mark Murphy told investors, “…our impression was that partners’ tone turned slightly less negative, with GenAI activity creating new excitement, aligning with Salesforce’s indication that customers are ‘a lot less measured’ in the buying environment.”
While noting Salesforce’s rapid cash flow surge, the firm said the company continues to operate in an uneven environment. Despite that, JP Morgan said it continues to see real potential for valuation upside. The firm predicts Salesforce’s AI integration to drive growth expectations. In addition, JP Morgan said the stock has room to catch up with recent peer group performance.
Meanwhile, Bank of America also kept its Buy rating and increased its price target from $280 to $300. Analyst Bradley Sills said Salesforce’s Backlog growth of 13% year-over-year exceeded its 10% expectations. The bank pointed out that while a single big deal contributed to some of the upside, early renewals and excellent execution were primarily responsible for it.
Is CRM a Good Stock to Buy Now?
Overall, analysts have a Moderate Buy consensus rating on CRM stock based on 26 Buys, 12 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 83.27% rally in its share price this year, the average CRM price target of $271.97 per share implies 10.96% upside potential.
