William Blair analyst Arjun Bhatia has maintained their bullish stance on CRM stock, giving a Buy rating today.
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Arjun Bhatia has given his Buy rating due to a combination of factors including Salesforce’s consistent revenue growth and strategic advancements in AI. The company reported a 9% increase in constant-currency revenue, slightly surpassing expectations, and maintained its full-year revenue guidance. This performance was bolstered by one-time license revenues and professional services, though these are not expected to recur in the latter half of the year.
Additionally, Salesforce’s initiatives in AI, particularly with Data Cloud and Agentforce, show promising early signs, although they are still in the nascent stages. The company’s strategic entry into the ITSM market and its pay-as-you-go consumption model further enhance its growth prospects. Salesforce’s stock is currently trading at a significant discount compared to its large-cap software peers, making it an attractive investment opportunity for the long term.
Bhatia covers the Technology sector, focusing on stocks such as Similarweb, NICE, and Atlassian. According to TipRanks, Bhatia has an average return of 1.7% and a 44.89% success rate on recommended stocks.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $315.00 price target.