JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, TD Cowen reaffirmed its confidence in Salesforce.com (NYSE:CRM) by maintaining a Buy rating and a price target of $375.00. The firm’s analyst, Derrick Wood, provided insight into the company’s recent strategic moves, highlighting Salesforce’s acquisition approach and its integration into their Agentic AI roadmap.
Wood praised Salesforce’s latest acquisition for enhancing its Agentforce capabilities, which are crucial for accessing cross-enterprise data—a key component of their Agentic AI. He noted that the acquisition was made at a multiple of approximately 5.1 times EV/TTM Sales, marking it as Salesforce’s most cost-effective deal compared to the average 14.7 times multiple of its previous 12 acquisitions.
The acquisition, valued at an implied enterprise value (EV) of around $8.5 billion, stands as Salesforce’s third-largest purchase, following Slack and Tableau. Wood pointed out that the relatively moderate price tag, along with the expectation of accretion in the second year following the closing, should contribute positively to Salesforce’s strategic objectives.
Wood’s comments also emphasized the strategic fit of the acquisition with Salesforce’s Data Cloud, which is anticipated to play a significant role in advancing the company’s Agentic AI initiatives. He suggested that this alignment would likely result in robust growth and margin synergies for Salesforce.
The analyst’s reiteration of a Buy rating and a $375.00 price target reflects TD Cowen’s optimistic outlook on Salesforce’s ability to leverage its recent acquisition to strengthen its position in the AI space and drive financial performance. Salesforce’s approach to mergers and acquisitions, now underscored by a new valuation and accretion discipline, appears to be a key factor in the firm’s positive assessment.
In other recent news, Salesforce has announced a definitive agreement to acquire Informatica, a data management software provider, in a deal valued at approximately $8 billion. The acquisition, expected to close in early fiscal 2027, will be an all-cash transaction with Informatica shareholders receiving $25 per share. This price represents a 33% premium over the stock’s price prior to acquisition rumors. William Blair analysts have maintained an Outperform rating for Salesforce following the announcement. Guggenheim also reiterated a Buy rating for Informatica with a $27 price target, highlighting the strategic fit of the acquisition for Salesforce’s data integration capabilities. Meanwhile, Raymond (NSE:RYMD) James reaffirmed a Strong Buy rating for Salesforce with a $375 price target, noting potential enhancements to Salesforce’s data management capabilities. Wedbush Securities maintained an Outperform rating for Salesforce with a $425 price target, emphasizing the strategic importance of the acquisition for Salesforce’s AI strategy. In contrast, RBC Capital Markets raised its price target for Informatica to $22 from $19, maintaining a Sector Perform rating amid acquisition speculations.
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