Salesforce, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Derrick Wood from TD Cowen maintained a Buy rating on the stock and has a $335.00 price target.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Derrick Wood has given his Buy rating due to a combination of factors including Salesforce’s strong performance in the second quarter, where revenue and cRPO growth exceeded expectations. The company’s Data Cloud and AI annual recurring revenue (ARR) continues to show impressive year-over-year growth, indicating robust early adoption.
Furthermore, Salesforce’s operational margin surpassed market predictions, and the company demonstrated significant strength in mid-market and large enterprise deals. Despite some market concerns, Wood believes that Salesforce is well-positioned to benefit from AI advancements in the future. The attractive valuation at approximately 15 times the enterprise value to expected free cash flow for the fiscal year 2026 further supports the Buy rating.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $315.00 price target.