Salesforce deal leaves ‘ample’ cash for buybacks, says Jefferies

Jefferies analyst Brent Thill keeps a Buy rating on Salesforce with a $350 price target after announced an agreement to acquire Own for $1.9B in cash. The deal represents 15% of Salesforce’s cash on hand, but the company is also expected to generate about $12B in free cash flow in fiscal 2025, “leaving ample capital” for buybacks, dividend, and tuck-in acquisitions, the analyst tells investors in a research note. The firm says that although the deal is the largest since Slack, it is not expected to have any material impact to financials in fiscal 2025. Jefferies believes that as long as Salesforce focuses on tuck-in deals, “investors will reward the stock.”