Derrick Wood, an analyst from TD Cowen, reiterated the Buy rating on Salesforce. The associated price target remains the same with $335.00.
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Derrick Wood has given his Buy rating due to a combination of factors that highlight Salesforce’s strong growth potential and strategic positioning. The company has set ambitious targets for FY30, aiming for over $60 billion in revenue and a 10%+ organic growth rate, which suggests a robust growth trajectory. These targets, along with a projected operating margin of around 40%, provide a solid benchmark for investors and indicate a promising path to revenue growth acceleration.
Moreover, Salesforce’s strategic advantages, such as its integrated data layer and the Customer 360 platform, position it well in the market. The company’s focus on deterministic business logic and the potential for increased adoption of Agentforce are seen as positive indicators. Despite the current measured adoption of Agentforce, management’s growing confidence suggests a potential uptick in the near future. With shares trading at a relatively low valuation, there is significant room for upside as Salesforce capitalizes on the expanding Agentic AI opportunity. Therefore, Wood reiterates a Buy rating with a price target of $335.
In another report released today, Evercore ISI also maintained a Buy rating on the stock with a $360.00 price target.