Stifel maintains Buy on Salesforce stock, target at $425

Published 19/02/2025, 14:18
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On Wednesday, Stifel analysts maintained their Buy rating and $425.00 price target for Salesforce.com stock (NYSE:CRM). According to InvestingPro data, Salesforce currently trades with a market cap of $314 billion and maintains impressive gross profit margins of 77%. The firm’s positive stance is rooted in the company’s growing interest and investment in its Agentforce product, which is currently being tested and deployed by various customers. Stifel’s analysis indicates that while many Salesforce customers are still in the preliminary phases of using Agentforce, such as testing and internal use, the product has generated significant interest.

Salesforce has been actively promoting Agentforce within its customer base and is dedicating more resources to research and development (R&D) and go-to-market (GTM) strategies to encourage broader adoption in 2025. This increased focus is expected to drive the product’s adoption and, ultimately, contribute to Salesforce’s revenue growth.

The upcoming earnings call for Salesforce is anticipated to place a strong emphasis on the opportunities presented by Agentforce. Stifel analysts predict that the call will provide updates on the customer base for Agentforce, the adoption of Data Cloud services, and details on the timeline for when these initiatives will start to significantly contribute to Salesforce’s financial performance.

The analysts’ commentary underscores the potential they see in Salesforce’s strategic initiatives, especially as the company continues to invest in product development and market expansion. With a sustained Buy rating and a price target of $425.00, Stifel signals confidence in Salesforce’s direction and its ability to capitalize on the growing interest in its Agentforce product.

In other recent news, Salesforce has announced a significant investment of $500 million in Saudi Arabia, aiming to boost innovation and economic growth in the region. This investment includes the introduction of Salesforce’s Hyperforce platform architecture in partnership with Amazon (NASDAQ:AMZN) Web Services, which will allow for local cloud infrastructure utilization. Meanwhile, analysts have been weighing in on Salesforce’s prospects, with Evercore ISI maintaining an Outperform rating and a $420 price target, citing potential growth from the Agentforce product in the future. BofA Securities also reiterated a Buy rating with a $440 target, highlighting Salesforce as a top pick due to expected growth acceleration and margin expansion. Needham echoed a similar sentiment, maintaining a Buy rating and a $400 target, noting strong demand trends in Europe and potential growth from new customer acquisitions. Additionally, Salesforce’s announcement of Robin Washington taking on the dual role of President and Chief Operating and Financial Officer has drawn mixed reactions from analysts, with some expressing concerns over the consolidation of roles. Despite this, Washington’s extensive experience and familiarity with Salesforce’s operations have been acknowledged.

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