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On Tuesday, Piper Sandler confirmed a positive outlook on Salesforce.com (NYSE:CRM) shares, maintaining an Overweight rating and a $405.00 price target. The endorsement follows recent investor meetings in Europe with Salesforce executives Alexandra Chan and Valmik Desai. With a market capitalization of $310.6 billion and a perfect Piotroski Score of 9 according to InvestingPro, Salesforce demonstrates exceptional financial strength, earning a "GREAT" overall health score.
Analyst highlighted the introduction of Agentforce as a key factor in reinvigorating customer engagement, although it is not expected to significantly impact revenue until the fiscal year 2027 (calendar year 2026).
The commentary after the meetings suggested that while the demand environment continues to be measured, the concerns about Agentforce investments negatively affecting margins are likely overstated. This view is supported by Salesforce's impressive gross profit margins of 76.94% and steady revenue growth of 9.53% over the last twelve months.
Moreover, there is a growing internal confidence at Salesforce regarding the potential of Agentforce, especially due to its competitive edge in delivering faster time-to-value for customers—measured in days instead of weeks compared to alternatives.
The analyst also noted that Salesforce's Agentforce is already contributing to new deals through incremental annual contract value (ACV) from bite-sized pilots. The pricing model remains stable, hovering around the list price of $2, with a rate card expected to introduce variable pricing. Furthermore, the company's strategy to indirectly monetize AI through multi-cloud cross-selling and premium editions could be undervalued by the market.
Early feedback on Agentforce indicates that Salesforce's approach is sparking more direct competitive comparisons, with its time-to-value proposition standing out. The company's ability to distinguish itself in this manner could be a significant advantage in the competitive landscape.
The $405.00 price target set by Piper Sandler suggests confidence in Salesforce's growth trajectory and the potential for Agentforce to become a more substantial revenue contributor in the coming years. Salesforce shares continue to be watched closely by investors as the company innovates and expands its product offerings.
Based on InvestingPro's comprehensive analysis, Salesforce is currently trading near its Fair Value. Discover 12 additional exclusive ProTips and detailed financial metrics with an InvestingPro subscription, including access to the in-depth Pro Research Report that provides actionable intelligence for smarter investing decisions.
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