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Investing.com - BofA Securities has reduced its price target on salesforce.com (NYSE:CRM) to $325.00 from $350.00 while maintaining a Buy rating on the stock. According to InvestingPro data, Salesforce currently trades at $247.87, with analyst targets ranging from $225 to $440, suggesting significant potential upside despite the recent adjustment.
The adjustment comes after BofA analyst discussions with nearly a dozen key partners suggested that second-quarter deal activity was merely in line with expectations rather than exceeding them.
According to BofA, the lack of upside was primarily driven by customers temporarily pausing digital transformation projects to evaluate Salesforce’s Agentforce offering, rather than any fundamental deterioration in the business.
BofA expects Salesforce to report second-quarter revenue of approximately $10.1 billion, representing 7.4% year-over-year growth on a constant currency basis, and current remaining performance obligation (cRPO) of about $19.2 billion, up 9.0% on a constant currency basis.
The firm anticipates foreign exchange rates will provide a 1% tailwind to reported growth, consistent with Salesforce’s previous guidance.
In other recent news, Salesforce is preparing for its upcoming fiscal second-quarter earnings report with mixed analyst expectations. TD Cowen has lowered its price target for Salesforce to $335, citing weak renewal business in the enterprise segment, though it maintains a Buy rating. Citizens JMP, on the other hand, reiterated a Market Outperform rating with a $430 price target, noting an increase in positive business data points. Meanwhile, Stifel also reduced its price target to $325 due to multiple compression but continues to see a positive long-term outlook for Salesforce. Additionally, Salesforce and ServiceNow are in advanced discussions to invest $1.5 billion in Genesys Cloud Services, valuing the company at around $15 billion. This investment marks a rare collaboration between competing enterprise software companies. These developments provide investors with varied insights into Salesforce’s current business environment and strategic moves.
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