Salesforce restructuring plan ‘a step in the right direction,’ says Jefferies

After Salesforce announced a restructuring plan that includes reducing its workforce by 10%, Jefferies analyst Brent Thill said he believes the plan is "a step in the right direction" that will lead to higher medium-term margins. Street expectations for 10.5% top line growth in FY24 "are still too high," but he believes "buy side expectations are fairly washed out," added Thill, who expects management to give more color on the macro environment when they provide initial FY24 guidance next quarter. Thill, who forecasts a compound 15% top line growth rate through FY26 to $46B, keeps a Buy rating and $230 price target on Salesforce shares.