In a report released today, Keith Weiss from Morgan Stanley maintained a Buy rating on Salesforce (CRM – Research Report), with a price target of $404.00.
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Keith Weiss has given his Buy rating due to a combination of factors that suggest Salesforce is poised for future growth. The company’s management has outlined a clear strategy to accelerate revenue growth back to the low-teens, which is a significant improvement from the current growth rate. This strategy includes leveraging new innovations, optimizing pricing and packaging, and enhancing bookings dynamics, all of which are expected to contribute to stronger growth.
Furthermore, Salesforce’s product portfolio, including GenAI solutions like Agentforce and Data Cloud, is showing promising signs with substantial annual recurring revenue and positive customer feedback. The stability in core products such as Sales & Service Clouds, along with the momentum from Mulesoft, Tableau, and Slack, provides a solid foundation for overcoming current challenges in Marketing and Commerce. With the stock trading at an attractive valuation and significant upside potential, Weiss sees a favorable risk/reward scenario, making it a compelling investment opportunity.
Weiss covers the Technology sector, focusing on stocks such as Intuit, Microsoft, and SailPoint, Inc.. According to TipRanks, Weiss has an average return of 14.0% and a 65.31% success rate on recommended stocks.
In another report released on June 18, Barclays also maintained a Buy rating on the stock with a $347.00 price target.