Bradley Sills, an analyst from Bank of America Securities, reiterated the Buy rating on Salesforce (CRM – Research Report). The associated price target was lowered to $400.00.
Bradley Sills has given his Buy rating due to a combination of factors that highlight Salesforce’s strong market position and growth potential. The company’s Q4 results were solid, with an 11% growth in current remaining performance obligations (cRPO), which exceeded expectations. This growth was partly driven by early renewals, suggesting a positive trajectory for the upcoming quarters. Additionally, the outlook for Q1 cRPO growth remains robust, indicating that Salesforce is on track to achieve its growth targets.
Another factor contributing to the Buy rating is the promising early momentum of Salesforce’s Agentforce and AI business, which is expected to become more significant in the coming years. Despite some weaker performances in the Marketing and Commerce Clouds, the strength in Data Cloud and core Sales and Service Clouds provides a balanced outlook. Furthermore, Salesforce’s focus on margin expansion through productivity efforts and cost rationalization is expected to drive sustained financial performance. Overall, Salesforce is positioned as a quality growth at a reasonable price (GARP) stock, with durable revenue growth and free cash flow growth, justifying the Buy recommendation.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $380.00 price target.
CRM’s price has also changed moderately for the past six months – from $265.280 to $307.330, which is a 15.85% increase.