Citi keeps a Neutral rating on Salesforce with a $290 price target after the company announced intentions to acquire data security startup Own for $1.9B in cash in an effort to beef up its artificial intelligence data security capabilities. Citi has a neutral view on the deal, saying it can be viewed as “responsible” given Salesforce’s dilution targets, but may suggest that its data cloud “is still very much a work in progress.” Citi believes Salesforce’s growth is slowing into the single-digits with rising competition in adjacent markets and margin expansion tapering.
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