Analyst Derrick Wood from TD Cowen maintained a Buy rating on Salesforce and decreased the price target to $305.00 from $335.00.
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Derrick Wood has given his Buy rating due to a combination of factors, despite the mixed signals from Salesforce’s recent performance. The enterprise checks showed some pressure, particularly with renewal business, but there is potential for improvement as Salesforce is actively adjusting its pricing and packaging strategies.
Additionally, while the commercial partner survey indicated some challenges, such as a slight decline in forward quarter pipeline growth, there are still significant opportunities for growth acceleration, especially with Agentforce and Data Cloud over the next 6-12 months. The valuation at approximately 14x EV/CY26E FCF supports maintaining a Buy rating, with a price target set at $305, reflecting confidence in Salesforce’s ability to navigate current challenges and capitalize on future opportunities.
In another report released on November 19, Evercore ISI also maintained a Buy rating on the stock with a $360.00 price target.