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Thursday’s trading session saw Salesforce.com Inc (NYSE:CRM) shares maintain their Strong Buy rating, with a price target of $375.00, as affirmed by Raymond (NSE:RYMD) James. The endorsement comes after the company’s first-quarter results surpassed analyst expectations, showcasing robust growth in strategic areas and an improved forecast for fiscal year 2026. According to InvestingPro data, Salesforce currently appears undervalued, with analysts setting targets ranging from $200 to $442, reflecting the market’s varied outlook on this prominent software industry player.
Salesforce’s recent performance has been marked by a significant year-over-year increase of 120% in its Agentforce and Data Cloud services. With impressive gross profit margins of 77.2% and revenue growth of 8.7% over the last twelve months, this growth trajectory is expected to be further bolstered by the acquisition of Informatica, which Raymond James believes will strengthen Salesforce’s footing in data management and governance domains. InvestingPro analysis reveals 8 additional key insights about Salesforce’s growth potential and market position.
According to Raymond James, while there might be concerns among investors regarding an uptick in mergers and acquisitions, the strategic advantages outweigh potential risks. The firm anticipates that the Informatica deal will be accretive to earnings a year after its closure and could serve as a catalyst for Salesforce to achieve double-digit growth rates.
The analyst’s commentary highlighted that despite the uncertain economic landscape, Salesforce’s current valuation, trading at approximately 17 times the projected calendar year 2026 free cash flow, presents a compelling reason to maintain a positive outlook on the company’s shares. Raymond James remains confident in Salesforce’s growth potential and its ability to navigate through potential macroeconomic challenges.
In other recent news, Salesforce has been the subject of multiple analyst updates following its latest earnings report. The company’s financial results exceeded expectations, leading DA Davidson to raise its price target to $225, although the firm maintained an Underperform rating due to concerns about future growth. Wells Fargo (NYSE:WFC) also adjusted its price target to $275, keeping an Equal Weight rating, while noting mixed outcomes in Salesforce’s enterprise and Informatica deals. Wolfe Research maintained an Outperform rating with a $310 target, highlighting Salesforce’s 11% growth in constant currency remaining performance obligations and significant growth in its Data Cloud and Agentforce services.
KeyBanc Capital Markets reiterated an Overweight rating with a $440 price target, acknowledging Salesforce’s strategic adjustments and a 16.3% increase in current bookings. CEO Marc Benioff emphasized the company’s disciplined approach to mergers and acquisitions and its focus on maintaining margins and cash flow. Truist Securities also maintained a Buy rating with a $400 target, citing robust performance in subscription and support revenue and strong growth in the Data Cloud and AI segments. These recent developments reflect a diverse range of analyst perspectives on Salesforce’s market positioning and future performance.
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