Salesforce price target raised to $200 from $175 at Evercore ISI

Evercore ISI analyst Kirk Materne raised the firm’s price target on Salesforce to $200 from $175 and keeps an Outperform rating on the shares. While Evercore expects Q4 results will illustrate the challenges Salesforce is facing in terms of demand and is expecting "tepid" Q1 guidance, it contends "that’s baked in" and that "this is essentially a ‘survive and advance’ quarter." The firm, which has already adjusted its estimates to account for the top line headwinds, feels that its "upside case" for operating margins is becoming more realistic given headcount reductions and recent industry discussions. Evercore believes management commentary will support the firm’s view on margins and argues that "this is ultimately the key driver for the shares from current levels."