Analyst Bradley Sills from Bank of America Securities maintained a Buy rating on Salesforce and keeping the price target at $350.00.
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Bradley Sills has given his Buy rating due to a combination of factors indicating potential growth for Salesforce’s Service Cloud. Sills anticipates that the Service Cloud, which is a significant part of Salesforce’s business, will experience accelerated growth in the coming quarters. Despite a recent slowdown, the growth rate is expected to rebound to 9% and potentially trend towards 12% in the longer term. This optimism is based on the belief that the top-line growth has bottomed and is poised for reacceleration.
Additionally, Sills highlights promising growth drivers such as the upsell of add-on offerings and the new Agentforce AI offering. These elements are expected to capture significant incremental growth, with Service Cloud projected to outperform competitors. The integration of intuitive interfaces, robust customization, and analytics capabilities further strengthens its market position. In a long-term outlook, Sills estimates a compound annual growth rate (CAGR) of 9% for Service Cloud, with potential for 12% in an optimistic scenario, driven by increased user growth and penetration, as well as revenue from Agentforce for Service Cloud.
In another report released on July 11, Citizens JMP also reiterated a Buy rating on the stock with a $430.00 price target.