EU and US could reach trade deal this weekend - Reuters
On Tuesday, Mizuho (NYSE:MFG) Securities reiterated its Outperform rating and $380.00 price target for Salesforce.com shares (NYSE:CRM), currently trading at $275.92. With a market capitalization of $264.3 billion, Salesforce maintains strong market presence as a prominent player in the Software (ETR:SOWGn) industry. According to InvestingPro data, analysts’ consensus remains bullish, with price targets ranging from $243 to $442. The firm’s stance remains positive despite recent challenges faced by a clinical program related to the company. Mizuho’s analyst highlighted that the unfortunate patient death and subsequent clinical hold are necessary steps due to the safety event, which was not previously observed with RP-A501 or other AAV gene therapies.
Salesforce.com’s stock has seen a significant decline, approximately 60%, following the announcement of the clinical hold. Despite recent volatility, the company maintains impressive gross profit margins of 77.2% and generates substantial revenue of $37.9 billion over the last twelve months. The concern stems from a safety event known as capillary leak syndrome (CLS) that arose after the introduction of a C3 inhibitor to the immunosuppression protocol during a trial. Want deeper insights? InvestingPro offers 10 additional key tips about Salesforce’s performance and potential. This inhibitor was linked to CLS in the two patients who received it. Mizuho’s analysis suggests that the severe adverse event (SAE) may be more related to the addition of the C3 inhibitor rather than the AAV9 vector used in the therapy.
The firm is looking forward to further details on the mechanism of action behind the CLS cases and the proposed path forward for the trial after discussions with the FDA. While the incidences of thrombotic microangiopathy (TMA) reported in the trial are concerning, the analyst notes that the affected patients are recovering well. Mizuho is optimistic that increased genetic screening could reduce the likelihood of such events in future trials.
Mizuho’s continued endorsement of Salesforce.com’s stock rating comes with the belief that there is a viable path forward for the program once a modified safety plan is in place. The company’s strong financial position is reflected in its "GOOD" Financial Health score from InvestingPro, with particularly robust scores in growth (3.94/5) and profitability (3.57/5). Discover comprehensive analysis and detailed metrics in the Pro Research Report, available exclusively to InvestingPro subscribers. The firm also emphasizes that there should be no read-through to Rocket’s other clinical cardiovascular program, RP-A601, which uses a different vector and does not include the C3 inhibitor, indicating a separation of concerns between the two programs.
In other recent news, Salesforce has been the subject of several analyst reports, each providing insights into the company’s financial prospects and strategic moves. UBS analyst Karl Keirstead revised Salesforce’s price target to $300, noting potential risks associated with mergers and acquisitions, particularly the company’s interest in acquiring Informatica. Meanwhile, Truist Securities maintained its Buy rating with a $400 price target, emphasizing the strategic benefits of the Informatica acquisition, which is expected to enhance Salesforce’s capabilities in artificial intelligence and various industry sectors. Evercore ISI also reaffirmed its positive outlook with a $350 price target, highlighting the potential for Salesforce’s recent acquisition to bolster its data management capabilities and align with its broader strategy.
BMO Capital Markets adjusted its price target to $350 but maintained an Outperform rating, expressing optimism about Salesforce’s long-term prospects despite the immediate impact of the Informatica acquisition. Goldman Sachs echoed a similar sentiment, keeping a Buy rating and a $340 price target, with expectations of a 7% revenue increase in the upcoming earnings report. The firm also noted Salesforce’s strategic investments and product momentum as factors that could support future growth.
Salesforce plans to finalize the Informatica acquisition in fiscal year 2027, aiming for synergies that could positively impact its non-GAAP operating margin and earnings per share. Analysts have varying projections, with some suggesting that the acquisition could be accretive to earnings in the second year post-completion. As Salesforce continues to navigate its growth strategy, these developments will be closely watched by investors seeking to understand the company’s trajectory in a dynamic market environment.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.