JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Thursday, Bernstein SocGen Group adjusted its price target for Salesforce.com (NYSE:CRM) stock, increasing it from $243 to $255, while maintaining an Underperform rating on the company. Currently trading at $276.03, the stock has analyst targets ranging from $225 to $442, with InvestingPro analysis indicating the stock is currently overvalued. The adjustment followed Salesforce’s recent quarterly financial results, which the firm described as neither particularly impressive nor disappointing. The results showed revenue exceeding expectations slightly, but margins fell short of consensus estimates. According to InvestingPro data, Salesforce maintains impressive gross profit margins of 77.19% and generated $37.9 billion in revenue over the last twelve months, with 8.72% year-over-year growth. The influence of foreign exchange rates was noted as a significant factor in the revenue outperformance and the entirety of the fiscal year guidance increase.
The previous day’s announcement of Salesforce’s acquisition of Informatica was highlighted as the more significant development of the quarter. Bernstein SocGen Group regarded the deal as a sensible purchase made at a fair price. The analyst pointed out that while Salesforce continues to grow, it is operating in markets that are also reaching maturity. The company has historically been valued based on the anticipation of revenue acceleration.
Bernstein SocGen Group further elaborated on the challenges Salesforce faces, particularly with its Agentic AI initiative, which is in the early stages of development and faces stiff competition. As a result, the firm believes that Salesforce’s stock presents limited potential for price appreciation and carries a substantial risk of decline. Despite these concerns, the price target was raised to reflect the updated financial model projected forward by the firm. InvestingPro analysis reveals strong fundamentals with a "GOOD" overall financial health score and 8 additional exclusive insights available to subscribers, including detailed valuation metrics and growth projections.
In other recent news, Salesforce reported first-quarter results that exceeded analyst expectations, demonstrating robust growth in several strategic areas. The company’s current remaining performance obligations (cRPO) grew by 12.1% year-over-year, outperforming its own guidance and analyst projections. Analysts from Needham maintained a Buy rating with a $400 price target, while Raymond (NSE:RYMD) James upheld a Strong Buy rating with a $375 target, citing Salesforce’s growth in Agentforce and Data Cloud services. However, Oppenheimer adjusted its price target to $370 from $380, maintaining an Outperform rating, due to a compression in group multiples and cautious second-quarter guidance.
DA Davidson raised its price target to $225 from $200 but kept an Underperform rating, expressing concerns about Salesforce’s future growth prospects despite a strong earnings report. Wells Fargo (NYSE:WFC) increased its price target to $275 from $255, maintaining an Equal Weight rating, and highlighted the mixed momentum in Salesforce’s Data Cloud and Agentforce. The acquisition of Informatica is expected to bolster Salesforce’s position in data management, with Raymond James anticipating that the deal will be accretive to earnings a year after closure. Despite some reservations about growth and strategic investments, analysts generally maintain a positive outlook on Salesforce’s performance and market positioning.
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