Salesforce stock holds $430 target post-strong Q1 results

Published 29/05/2025, 10:00
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JMP Securities’ continued confidence in Salesforce (NYSE:CRM) is reflected in the steady price target of $430.00, which the company has maintained despite the broader market’s volatility and Salesforce’s own share price fluctuations throughout the year. The broader analyst consensus maintains a "Buy" recommendation, with price targets ranging from $200 to $442. The reaffirmed rating and target price underscore the analyst’s outlook that Salesforce remains well-positioned within its sector, having demonstrated resilience and growth potential through its latest financial results. Salesforce’s ability to exceed expectations amidst economic uncertainties appears to have contributed to the firm’s optimistic assessment of the company’s stock.

The firm’s subscription revenue also showed a strong performance, coming in at $9.30 billion against the expected $9.22 billion, representing an 8% year-over-year growth and maintaining the level from the last quarter. This performance aligns with the company’s broader growth trajectory, as InvestingPro data shows a robust 5-year revenue CAGR of 17%. Additionally, Salesforce’s remaining performance obligations (RPO) totaled $60.9 billion, beating the $60.1 billion consensus and displaying a 13% year-over-year growth, an acceleration from the 11% growth seen in the previous quarter.

The positive report led to a roughly 1% increase in Salesforce stock in after-market trading. This slight uplift came as a reprieve after the stock had experienced a 17% decline since the beginning of the year. This performance was set against a backdrop where the S&P 500 and Russell 3000 indexes saw an approximate 1% decline over the same period.

JMP Securities’ continued confidence in Salesforce is reflected in the steady price target of $430.00, which the company has maintained despite the broader market’s volatility and Salesforce’s own share price fluctuations throughout the year.

The reaffirmed rating and target price underscore the analyst’s outlook that Salesforce remains well-positioned within its sector, having demonstrated resilience and growth potential through its latest financial results. Salesforce’s ability to exceed expectations amidst economic uncertainties appears to have contributed to the firm’s optimistic assessment of the company’s stock.

In other recent news, Salesforce Inc. reported strong financial results for the first quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share of $2.58, exceeding the forecast of $2.54, while revenue reached $9.83 billion, beating the anticipated $9.75 billion. Salesforce also announced a significant $8 billion acquisition of Informatica, aimed at enhancing its data capabilities. This acquisition is expected to be accretive within two years post-closing, according to Salesforce’s capital allocation strategy. Additionally, Salesforce raised its fiscal year 2026 revenue guidance to $41.3 billion, reflecting confidence in its strategic initiatives. Analyst firms have noted the company’s solid performance, with strong growth in subscription and support sales. The company is also expanding its workforce by adding 1,000 to 2,000 salespeople, a move to bolster its distribution network and support future growth.

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