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On Tuesday, BMO Capital Markets adjusted its outlook on Salesforce.com (NYSE:CRM) shares, reducing the price target to $350 from the previous $367. The firm, however, continues to endorse the stock with an Outperform rating. The company, currently valued at $262 billion, maintains impressive gross profit margins of 77% and generated nearly $38 billion in revenue over the last twelve months, according to InvestingPro data. Keith Bachman, an analyst at BMO Capital, provided some insights ahead of Salesforce’s upcoming earnings report, noting that feedback from April-quarter channels indicated results that were mostly as expected or slightly better than anticipated.
Bachman anticipates that Salesforce will report a quarter that aligns closely with projections and foresees the company maintaining its top-line guidance and estimates for fiscal year 2026. Despite the potential acquisition of Informatica not instilling additional confidence in the quarterly results, BMO Capital maintains a positive view on Salesforce’s long-term prospects, particularly with its Agentforce product. Bachman suggests that while the product holds significant promise, investors may need to exercise patience.
The decision to lower the price target to $350 was made without altering earnings estimates. Bachman’s commentary reflects a cautious yet optimistic stance on Salesforce’s performance and strategic initiatives. "We remain bullish on the longer-term potential of Agentforce but we think investor patience will be required," stated Bachman. "We are not changing estimates, though we are lowering our target price to $350."
Salesforce, a leader in customer relationship management (CRM) software, has been actively expanding its offerings and market reach. The company’s potential dealings with Informatica, a data management firm, could further enhance Salesforce’s product suite and customer value proposition. As the market awaits Salesforce’s financial disclosures, BMO Capital’s revised price target and continued Outperform rating will be of interest to investors monitoring the tech sector. InvestingPro has identified multiple additional bullish factors for Salesforce, including its strong market position and growth potential. Subscribers can access the comprehensive Pro Research Report, which provides detailed analysis of Salesforce’s financial health and growth prospects.
In other recent news, Salesforce is preparing to report its first-quarter earnings for fiscal year 2026 on May 28, with projections indicating a 7% increase in revenue and a 10% rise in current remaining performance obligations. Analysts from Goldman Sachs maintain a Buy rating with a $340 price target, citing confidence in Salesforce’s ability to sustain growth despite challenges such as Department of Justice oversight and executive transitions. Stifel analysts also uphold their Buy rating and a $375 price target, emphasizing Salesforce’s strategic focus on regulated industries through its Agentforce platform. Meanwhile, JMP Securities continues to rate Salesforce as Market Outperform with a $430 price target, following the introduction of a new flexible pricing model for Agentforce. Additionally, TD Cowen analysts express optimism about Salesforce’s performance in data and artificial intelligence, maintaining a Buy rating with a $375 target. Salesforce’s partnership with the U.S. General Services Administration aims to reduce Slack costs for federal agencies, enhancing productivity with a significant price reduction until November 2025. This partnership reflects Salesforce’s ongoing efforts to adapt its offerings to meet market demands and customer needs.
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