Morgan Stanley analyst Keith Weiss maintained a Buy rating on Salesforce (CRM – Research Report) yesterday and set a price target of $404.00.
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Keith Weiss has given his Buy rating due to a combination of factors that highlight Salesforce’s potential for revenue growth and market stability. The recent announcement of price increases for Salesforce’s Enterprise and Unlimited Editions is a significant factor, as these changes are expected to apply to both new business and contract renewals. This strategic move is anticipated to contribute to a substantial revenue increase, potentially adding around $1 billion in incremental revenue over the next two years, thereby boosting topline growth into double digits.
Additionally, the focus on Sales and Service Cloud, along with the emphasis on Enterprise and Unlimited Editions, suggests a targeted approach that could enhance Salesforce’s core business value. The pricing strategy, coupled with the potential contributions from Agentforce add-ons and AI innovations, positions Salesforce to address investor concerns and demonstrate its commitment to innovation and value delivery. This combination of pricing-driven growth and technological advancements presents a compelling investment opportunity, which is reflected in Weiss’s Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $347.00 price target.
CRM’s price has also changed moderately for the past six months – from $350.970 to $262.760, which is a -25.13% drop .