The analyst believes that these developments position Salesforce to potentially reaccelerate its top-line revenue growth by the second quarter of FY26. This expectation is further bolstered by the prospect of easier year-over-year comparisons and justifies higher valuation multiples for the company's stock.
The commentary from Oppenheimer highlighted that Salesforce's third-quarter results and forward-looking guidance reinforce the perception of the company as a solid business with improving prospects. This improvement is expected to be driven by AI product cycles, a positive forecast for the fourth quarter, and continued margin expansion.
The revised price target of $415 reflects this optimistic outlook for Salesforce's future performance. Based on InvestingPro Fair Value analysis, the stock appears slightly undervalued despite trading near its 52-week high of $348.86, suggesting potential upside remains.
Based on InvestingPro Fair Value analysis, the stock appears slightly undervalued despite trading near its 52-week high of $348.86, suggesting potential upside remains.
Salesforce reported another quarter of double-digit CRPO billings growth. According to the analyst from Oppenheimer, this trend appears sustainable, especially in light of anticipated normalization in software spending.
The outlook is supported by decreasing macro uncertainties and the growing significance of IT and artificial intelligence (AI) in driving enterprise growth and efficiencies. With revenue reaching $36.47 billion and strong free cash flow generation, InvestingPro analysis reveals 16 additional key insights about Salesforce's performance and potential.
The analyst believes that these developments position Salesforce to potentially reaccelerate its top-line revenue growth by the second quarter of FY26. This expectation is further bolstered by the prospect of easier year-over-year comparisons and justifies higher valuation multiples for the company's stock.
The commentary from Oppenheimer highlighted that Salesforce's third-quarter results and forward-looking guidance reinforce the perception of the company as a solid business with improving prospects.
The improvement is expected to be driven by AI product cycles, a positive forecast for the fourth quarter, and continued margin expansion. The revised price target of $415 reflects this optimistic outlook for Salesforce's future performance.
In other recent news, Salesforce.com (NYSE:CRM) has seen a flurry of activity from analysts following its strong third-quarter results and the release of new products. Needham has raised its price target for Salesforce to $375, maintaining a buy rating, following a 10% growth in current remaining performance obligations (cRPO). The company also projected a 9% cRPO growth for the fourth quarter, indicating a positive trajectory for the coming period.
Canaccord Genuity also maintained a buy rating for Salesforce, raising its price target to $415, highlighting the company's impressive financial health and 76.35% gross profit margins. Meanwhile, Guggenheim maintained a neutral rating, pointing to growth primarily driven by early renewals rather than new bookings.
Goldman Sachs increased the price target for Salesforce shares to $400, reaffirming a buy rating, and Evercore ISI raised its price target to $420, maintaining an outperform rating.
These recent developments reflect the ongoing confidence of market analysts in Salesforce's business strategy and financial health. The company's performance in new products such as Agentforce and Data Cloud, as well as its strong presence within large customers, has been noted across the board.
Analysts from Goldman Sachs, Evercore ISI, Raymond (NS:RYMD) James, and Citi have expressed confidence in Salesforce's potential to achieve significant free cash flow per share in the coming years, supported by sustained top-line growth.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.