Salesforce price target lowered to $140 from $150 at Loop Capital

Loop Capital analyst Yun Kim lowered the firm’s price target on Salesforce to $140 from $150 and keeps a Hold rating on the shares. The company’s announcement that it is laying off 10% of its workforce provides additional evidence that the management is doubling down on its approach to operating a more cost-disciplined business, which could lead to a solid, consistent margin expansion path going forward, the analyst tells investors in a research note. Kim adds however that a meaningful sales reorganization at the beginning of the year could prolong the sales execution risk well into the first half of FY24, and his adjusted current RPO, or Remaining Performance Obligations, estimates reflect this elevated execution risk going forward.