Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - BNP Paribas Exane has reiterated an Outperform rating on salesforce.com (NYSE:CRM) with a price target of $305.00, according to a research note released Thursday. According to InvestingPro data, the company, currently valued at $233.1 billion, appears undervalued based on its Fair Value analysis.
The company’s stock fell 5% despite Salesforce reiterating its fiscal year guidance amid concerns about the demand environment. BNP Paribas noted that Salesforce added 2,000 paying Agentforce customers quarter-over-quarter, increasing from 4,000 to 6,000, which represents double the additions from the previous quarter. The company maintains impressive gross profit margins of 77.65% and has achieved revenue of $39.5 billion in the last twelve months.
The research firm highlighted Salesforce’s low valuation and weak year-to-date share performance, suggesting the fiscal year guidance reiteration and evidence of progress with Data & AI should have been sufficient to drive a share price increase.
BNP Paribas also pointed to Salesforce’s announcement of a $20 billion addition to its buyback program as a signal that "investment discipline is here to stay."
The analyst observed that investors remain in "wait and see" mode for Salesforce and other SaaS companies without beats and raises or material AI contribution, similar to what occurred with Workday, even when results exceed negative expectations.
In other recent news, Salesforce.com reported its second-quarter earnings, showcasing strong performance with all key metrics exceeding expectations. The company’s Data Cloud and AI offerings contributed significantly, achieving over $1.2 billion in annual recurring revenue, a 120% year-over-year increase. Despite these results, Salesforce maintained its fiscal year 2026 constant currency subscription revenue growth guidance at around 9%. Several firms have adjusted their price targets for Salesforce, reflecting varying outlooks. CFRA lowered its target to $300, maintaining a Strong Buy rating due to a price-to-earnings ratio considered a deep discount to historical averages. TD Cowen reiterated a Buy rating with a $335 target, while RBC Capital reduced its target to $250, citing a mixed outlook. Piper Sandler adjusted its target to $315, noting non-recurring foreign exchange and licensing benefits. Wells Fargo also lowered its target to $265, pointing to slower-than-expected AI adoption and a lack of fiscal year guidance raise.
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