BTIG initiates coverage on Salesforce stock with Buy rating, $335 target

Investing.com - BTIG initiated coverage on Salesforce.com (NYSE:CRM) with a Buy rating and a price target of $335.00 on Wednesday, aligning with the broader analyst consensus that remains bullish on the software giant. According to InvestingPro data, Salesforce currently has a strong buy consensus rating of 1.64, with analyst targets ranging from $223 to $475.

The research firm highlighted Salesforce’s re-architecture of its core platform, development of Data 360 for golden customer records, and rapid innovation in its Agentforce layer as key factors supporting the positive outlook. This innovation strategy appears to be paying off, with Salesforce maintaining impressive gross profit margins of 77.7% over the last twelve months.

BTIG noted that Salesforce management’s tone improved at Dreamforce, with increased transparency about business trends, including confidence in Net New Annual Order Value (NNAOV) accelerating and growing faster than Annual Order Value (AOV) through next year.

Agentforce Annual Recurring Revenue (ARR) has reached $540 million, representing 330% year-over-year growth, primarily from customers piloting the platform with an Average Revenue Per Customer (ARPC) of approximately $57,000, while customers in production are growing rapidly at 70% quarter-over-quarter.

BTIG projects Salesforce will return to organic double-digit subscription revenue growth in fiscal fourth quarter 2027, with positive feedback from customers and partners on Agentforce and the general demand environment supporting their bullish stance.

In other recent news, Salesforce reported an 8% growth in total currency-adjusted revenue for the third quarter, meeting analysts’ expectations. Despite a "mixed" earnings report, UBS maintained a Neutral rating with a $260 price target, citing some conservatism in Salesforce’s forecasts. Meanwhile, the U.S. Department of Transportation announced an expansion of its partnership with Salesforce to enhance agency operations using the company’s AI-driven Agentforce platform. This initiative aims to automate routine tasks and improve citizen support through real-time data analysis.

Truist Securities reiterated its Buy rating with a $380 price target, highlighting progress in Salesforce’s Agentforce and Agentic Enterprise strategy. Mizuho also maintained its Outperform rating and $340 price target, expressing confidence in the company’s growth prospects after discussions with Salesforce executives. Cantor Fitzgerald supported an Overweight rating and a $325 price target, noting improvements in Salesforce’s pricing strategy to address customer concerns. These developments reflect Salesforce’s ongoing efforts to strengthen its market position and enhance customer satisfaction.

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