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Investing.com - Piper Sandler maintained its Overweight rating and $315.00 price target on Salesforce.com (NYSE:CRM) following the company’s third-quarter results, citing encouraging progress in its artificial intelligence offerings. The price target suggests significant upside from the current price of $238.72, aligning with InvestingPro data indicating Salesforce is undervalued based on its Fair Value assessment. The company boasts a perfect Piotroski Score of 9, reflecting exceptional financial stability.
The firm highlighted that Salesforce’s Agentforce annual recurring revenue (ARR) has reached $540 million, representing 1.4% of the company’s subscription run-rate. This growth was accompanied by positive customer signals, with approximately 50% of Agentforce bookings coming from existing customers making additional commitments, up from 40% in the previous quarter.
Salesforce reported a 70% quarter-over-quarter increase in customers in production, rising to approximately 2,200 from 800 in the first quarter. The company’s combined Data and AI offerings now approach 4% of total ARR.
While Salesforce’s revenue fell slightly short of the midpoint guidance in the third quarter, Piper Sandler noted this was primarily due to weakness in Marketing and Commerce, cloud mix-shift at Tableau, and license revenue timing issues. These shortfalls were overshadowed by strong bookings commentary around Agentforce and a 200 basis point beat on current remaining performance obligation (cRPO) growth.
Salesforce management reiterated expectations for reaccelerating growth within the next 12-18 months, supporting Piper Sandler’s decision to maintain its Overweight rating and $315 price target.
In other recent news, Salesforce.com reported its fiscal third-quarter results, which showed a mix of outcomes. The company experienced stronger-than-expected bottom-line performance despite lower-than-anticipated revenue, leading to an adjusted fiscal year guidance. Analysts from DA Davidson responded by raising their price target to $235, while maintaining a Neutral rating. Meanwhile, Bernstein increased its price target to $223, keeping an Underperform rating, citing concerns about Salesforce’s position in the AI transformation despite stable quarterly results.
Cantor Fitzgerald reaffirmed its Overweight rating with a $325 price target, noting that Salesforce’s results were largely in line with expectations, with positive signs in contracted revenue pipeline and operating margin. Oppenheimer also maintained an Outperform rating and set a $300 price target, highlighting robust growth in Salesforce’s AI businesses and improved financial transparency. Needham reiterated a Buy rating with a $400 price target, acknowledging better-than-expected growth in the company’s remaining performance obligations and stronger fourth-quarter guidance. These developments underscore the mixed analyst perspectives on Salesforce’s future performance.
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