Salesforce price target raised to $250 from $235 at Oppenheimer

Oppenheimer raised the firm’s price target on Salesforce to $250 from $235 and keeps an Outperform rating on the shares. The firm notes that Salesforce Q2 results exceeded a low bar and showed double-digit top-line growth, a record 31.6% operating margin, and higher FY2024 guidance. Importantly, CRPO billings grew 11% in Q2 and the Q3 CRPO guidance implies low teens’ percentage billings growth, which is not strong growth, but suggests stability in the sales operations after a period of organizational transformation. The combination of price increases and a better outlook for the second half of the year alongside a large remaining product penetration opportunity, generative AI opportunities, and an entrenched front office platform positioning in the enterprise market and focused costs management give Oppenheimer confidence in Salesforce’s ability to drive durable growth and higher margins in FY25 and beyond.