Positive Outlook for Salesforce Driven by Strong Data Solutions and Promising Agentforce Growth

TD Cowen analyst Derrick Wood has maintained their bullish stance on CRM stock, giving a Buy rating yesterday.

Derrick Wood’s rating is based on a combination of factors that suggest a positive outlook for Salesforce. He notes that while there are some areas of softness, particularly on the commercial side, the demand for data solutions remains strong, and there are promising early adoption signals for Agentforce. The company’s product offerings like Mulesoft and Tableau have shown improvement, and Agentforce is expected to experience significant growth in the coming months.
Additionally, Salesforce’s net sales hiring tracker is at its strongest in approximately three and a half years, indicating a robust sales strategy. Despite some challenges, such as competitive pressures on Commerce Cloud, the overall strength in data offerings and the solid traction of Agentforce contribute to a favorable outlook. Wood also highlights that Salesforce’s financial metrics, such as the enterprise value to free cash flow ratio, are attractive, supporting his Buy rating.

In another report released yesterday, Bank of America Securities also maintained a Buy rating on the stock with a $350.00 price target.

Based on the recent corporate insider activity of 244 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRM in relation to earlier this year.