Raymond James expects 2025 to be a big year for enterprise software stocks and has picked Salesforce (CRM) as its top choice for large-cap companies. The firm, led by five-star analyst Brian Peterson, highlighted that Salesforce is on pace to grow its subscription revenue by about 10% on a massive $30 billion base. It also praised Salesforce’s market leadership, steady free cash flow growth, and standout AI strategy.
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While AI has been the main topic of discussion for Wall Street during the past two years, many software companies have struggled to figure out how to make money from it. Salesforce, however, has done a great job rolling out AI-powered features that customers are willing to pay for. The company’s focus on practical, money-making AI tools has given it a clear advantage over competitors. As a result, Raymond James believes Salesforce’s strong position, consistent growth, and smart AI approach make it a long-term winner.
Even though the firm downgraded other companies like Intapp (INTA) and RingCentral (RNG), it emphasized that Salesforce stands out because it is leading the way in helping businesses make multi-cloud transformations. It is also worth noting that, so far, Peterson has enjoyed an 81% success rate on CRM stock, with an average return of 20% per rating. Furthermore, his current price target of $350 per share implies over 5% gains from current levels.
Is CRM a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRM stock based on 31 Buys, nine Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 33% rally in its share price over the past year, the average CRM price target of $398.34 per share implies 19.7% upside potential.
