Barclays sees ‘muted share response’ to Salesforce Q2 report

Barclays sees a “muted share response for Salesforce’s Q2 print, given a lack of a meaningful positive catalysts.” While the setup for the model is “undemanding,” worse reseller checks are “muddying this,” the analyst tells investors in a research note. The firm sees tough Q3 current remaining performance obligation compares and prior margin expansion as being limiting factors. Barclays says its reseller survey came in more negatively, outside of a few select data points around artificial intelligence. Just 20% of resellers reported some level of outperformance to their plans versus 64% last quarter, “a level that we have not seen in this survey since the pandemic-impacted quarters,” writes Barclays. The firm keeps an Overweight rating on Salesforce with a $305 price target as part of a Q2 preview.