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On Tuesday, Evercore ISI reiterated its positive stance on salesforce.com (NYSE:CRM) shares, maintaining an Outperform rating with a $350.00 price target. The firm’s analyst highlighted the potential benefits of the company’s recent acquisition of Informatica, emphasizing that it will enhance Salesforce’s data management capabilities and align well with its broader Agentforce strategy. According to InvestingPro data, Salesforce currently trades at a P/E ratio of 42.75 with a market capitalization of $264.76 billion, and analysis suggests the stock is slightly undervalued based on its Fair Value assessment.
According to the analyst, conversations within the industry support the strategic rationale behind the acquisition. The report suggests that while Salesforce anticipates the transaction to be accretive to non-GAAP earnings in the second year after completion, Evercore ISI’s own calculations suggest this could be a conservative estimate. InvestingPro data shows Salesforce maintains impressive gross profit margins of 77.19% and has achieved revenue growth of 8.72% over the last twelve months, indicating strong operational efficiency.
Despite expectations that Salesforce stock might stay within a near-term trading range as investors look for more proof of organic growth reacceleration in the second half of the year, Evercore ISI believes that the current share price already factors in significant skepticism regarding the Agentforce strategy. The firm’s analysis indicates that the risk/reward balance for Salesforce shares is substantially positive, especially given the stock’s valuation at approximately 18 times enterprise value to calendar year 2026 free cash flow.
The Evercore ISI report comes as Salesforce continues to navigate its growth strategy amidst a dynamic market environment. The acquisition of Informatica is seen as a strategic move to bolster the company’s offerings in data management, which is becoming increasingly important for businesses seeking to leverage data for competitive advantage.
Salesforce’s focus on organic growth and strategic acquisitions has been a key part of its approach to maintaining its position as a leader in the customer relationship management (CRM) space. With this latest acquisition, Salesforce aims to further solidify its offerings and provide enhanced services to its customers.
Investors and market watchers will likely continue to monitor Salesforce’s performance closely, looking for signs of growth acceleration and successful integration of Informatica into its suite of services. As the company works to prove the value of its Agentforce strategy, the coming months will be critical in shaping perceptions and investor confidence in Salesforce’s future trajectory. For deeper insights into Salesforce’s financial health and growth prospects, InvestingPro offers a comprehensive Pro Research Report, featuring detailed analysis of the company’s performance metrics, valuation, and growth potential among 1,400+ top US stocks.
In other recent news, Salesforce has been at the center of several developments that could interest investors. BMO Capital Markets adjusted its price target for Salesforce shares to $350, down from $367, while maintaining an Outperform rating. The firm anticipates Salesforce’s upcoming earnings report to align closely with projections. Meanwhile, Goldman Sachs continues to endorse Salesforce with a Buy rating and a price target of $340, projecting a 7% increase in revenue and a 10% rise in current remaining performance obligations. Stifel also maintained its Buy rating, setting a price target at $375, expressing confidence in Salesforce’s strategy and product offerings, particularly its Agentforce platform.
Additionally, Salesforce has entered into a partnership with the U.S. General Services Administration to provide significant discounts on Slack for federal agencies, aiming to enhance government productivity. This agreement offers a temporary 90% price reduction on Slack Enterprise Grid and nearly 70% off Slack AI for Enterprise. Lastly, JMP Securities reaffirmed its Market Outperform rating for Salesforce with a $430 price target, highlighting the company’s new flexible pricing model for its Agentforce product as a strategic move to meet market demands. These recent developments reflect Salesforce’s ongoing efforts to expand its market reach and adapt its offerings to meet customer needs.
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