Salesforce price target raised to $335 from $325 at BMO Capital

BMO Capital raised the firm’s price target on Salesforce to $335 from $325 and keeps an Outperform rating on the shares. The company’s January quarter was solid, highlighted by a 2pt beat on Current Remaining Performance Obligation, though the total FY25 revenue guide was a bit below expectations, hurt by professional services, the analyst tells investors in a research note. Salesforce has also initiated its first dividend, which is appropriate given the current revenue run-rate, the firm added. While BMO is “skeptical” on the impact of Data Cloud and generative AI in the near term, it also finds Salesforce’s valuation “compelling”.