Analyst Keith Weiss from Morgan Stanley maintained a Buy rating on Salesforce and keeping the price target at $404.00.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Salesforce’s strategic initiatives and growth potential. A significant aspect of this positive outlook is the company’s Pricing and Packaging strategy, which is expected to drive growth acceleration. The recent price increases in the Enterprise and Unlimited tiers, although modest, are strategically designed to encourage upgrades to Premium tiers, offering customers enhanced value through bundled functionalities.
Moreover, Salesforce’s innovative approach in pricing is anticipated to catalyze upgrades among its largest customers, particularly with the introduction of the Agentforce 1 tier, which provides substantial cost savings. This strategic move is expected to maximize the value of Salesforce solutions for customers and contribute to the company’s revenue growth. Additionally, with Salesforce’s shares trading at a relatively low valuation compared to large-cap averages, the potential for growth re-acceleration presents a compelling opportunity for investors, supporting the Buy rating.
According to TipRanks, Weiss is a 5-star analyst with an average return of 14.2% and a 66.33% success rate. Weiss covers the Technology sector, focusing on stocks such as Microsoft, Intuit, and Salesforce.
In another report released yesterday, KeyBanc also reiterated a Buy rating on the stock with a $440.00 price target.