JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Thursday, Piper Sandler analyst Brent Bracelin increased the price target for Salesforce stock (NYSE:CRM) to $335 from the previous $315, while maintaining an Overweight rating on the company’s shares. The adjustment reflects a positive outlook following Salesforce’s recent financial performance and strategic acquisitions. According to InvestingPro data, Salesforce currently trades at $276.03, with analysis suggesting the stock is slightly undervalued based on its Fair Value model.
Bracelin’s analysis highlighted Salesforce’s second-quarter growth guide for current remaining performance obligations (cRPO) at a 9% constant currency rate, surpassing the bearish market expectations of 7-8%. This guidance, along with a raised full-year revenue forecast, is expected to appeal to value investors, particularly considering Salesforce’s year-to-date underperformance of 17% compared to the S&P 500’s slight increase of 0.1%.
The analyst noted that Agentforce, Salesforce’s growth catalyst, has contributed to a significant expansion in the Data Cloud sector, which now boasts a run-rate exceeding $1 billion. The recent acquisition of Informatica (INFA) was also mentioned as evidence of Salesforce’s renewed activity in the software mergers and acquisitions space, albeit with a more valuation-conscious approach. The INFA purchase was made at a multiple of 5.1x next twelve months (NTM) enterprise value to sales (EV/S), which is considered more conservative compared to Salesforce’s previous acquisitions of Tableau and Slack. InvestingPro analysis shows Salesforce maintains a moderate debt level with a debt-to-equity ratio of 0.2, suggesting prudent financial management. Want deeper insights? InvestingPro offers 8 additional key tips about Salesforce’s financial health and growth potential.
Bracelin’s report expressed confidence in the strategic direction of Salesforce, suggesting that the company’s actions indicate a prudent yet assertive approach to growth and value creation. The raised price target to $335 is based on these higher estimates and the continued Overweight rating signals a belief in the company’s potential to outperform the broader market. With a PEG ratio of 0.83, indicating attractive valuation relative to growth, Salesforce appears well-positioned for future expansion.
In other recent news, Salesforce reported its first-quarter financial results, which exceeded expectations, with revenue surpassing forecasts and a notable increase in its current remaining performance obligations (cRPO). The company also announced its acquisition of Informatica, a move seen by analysts as a strategic step to enhance Salesforce’s capabilities in data management and governance. Following these developments, several analysts adjusted their price targets for Salesforce. Bernstein SocGen Group raised its target to $255, maintaining an Underperform rating, while Oppenheimer reduced its target to $370 but kept an Outperform rating. Needham analysts maintained a Buy rating with a $400 target, highlighting the success of Salesforce’s Agentforce platform, which saw substantial growth in customer count and annual recurring revenue. Raymond (NSE:RYMD) James reiterated a Strong Buy rating with a $375 target, expressing optimism about the Informatica acquisition’s potential to drive double-digit growth. Meanwhile, DA Davidson increased its price target to $225, maintaining an Underperform rating due to concerns about future growth prospects. These analyst perspectives reflect a range of views on Salesforce’s performance and future outlook.
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