Salesforce price target raised to $236 from $228 at Morgan Stanley

Morgan Stanley analyst Keith Weiss raised the firm’s price target on Salesforce to $236 from $228 and keeps an Overweight rating on the shares, arguing that the current valuation is "materially underpricing" potential upside in profitability. On the firm’s updated topline estimates, resulting in EPS of $6.40 in calendar 2024 before accounting for expected cost savings from the restructuring, Salesforce currently trades roughly inline with Large Cap peers on an absolute basis. However, after implementing the firm’s base case assumption for about 50-60% annual flow-through of potential cost savings, shares trade at an "undemanding" 21.6 times its calendar 2024 EPS estimate of $7.63, Morgan Stanley tells investors.