Salesforce’s Robust Performance and Growth Potential Affirm Buy Rating

Bank of America Securities analyst Bradley Sills maintained a Buy rating on Salesforce (CRM – Research Report) today and set a price target of $360.00.

Bradley Sills has given his Buy rating due to a combination of factors indicating Salesforce’s robust performance and future growth potential. His assessment includes positive channel feedback, particularly from key Salesforce partners who have reported deal activities meeting or exceeding expectations. Strength was observed in Industry Clouds, especially within healthcare and financial sectors, as well as in the Data Cloud pilot deals and an uptick in the Marketing Cloud. These areas of growth, coupled with stable performance in Sales and Service Clouds, suggest a solid foundation for Salesforce’s continued success.

Furthermore, Sills anticipates an incremental growth in Salesforce’s current remaining performance obligations (cRPO), projecting a 1% point upside beyond the already expected 12% year-over-year growth. He also foresees potential outperformance in Q1 earnings per share (EPS) and margin, which could lead to an upward revision in the FY25 outlook for subscription growth and margin. Sills identifies Salesforce as an emerging quality Growth at a Reasonable Price (GARP) stock due to its leading position in the CRM industry, expected share gains, and ability to outpace industry growth. The anticipated reacceleration of subscription growth driven by the Data Cloud and the possibility of rerating due to a currently low valuation compared to GARP growth stocks further solidify his Buy rating.

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Salesforce (CRM) Company Description:

salesforce.com, inc. engages in the design and development of cloud-based enterprise software for customer relationship management. Its solutions include sales force automation, customer service and support, marketing automation, digital commerce, community management, collaboration, industry-specific solutions, and salesforce platform. The firm also provides guidance, support, training, and advisory services. The company was founded by Marc Russell Benioff, Parker Harris, David Moellenhoff, and Frank Dominguez in February 1999 and is headquartered in San Francisco, CA.