Wang & Lee Group board approves 250-to-1 reverse share split
On Friday, TD Cowen analyst Derrick Wood maintained a Buy rating on Salesforce.com (NYSE:CRM) with a consistent price target of $400.00. The company, currently valued at over $305 billion and showing impressive gross profit margins of 77%, appears undervalued according to InvestingPro Fair Value analysis. Wood’s optimism is based on positive feedback and survey results, particularly regarding Salesforce’s artificial intelligence positioning with Agentforce. The company, which maintains a perfect Piotroski Score of 9, is set to report its fourth-quarter earnings on February 26.
The analyst noted solid growth execution within Salesforce’s core business and anticipates a steady beat in committed remaining performance obligations (cRPO). With revenue growth of 9.5% over the last twelve months and strong cash flows that adequately cover interest payments, the company’s financial health appears robust. Wood also identified Data Cloud and Mulesoft (MULE) as significant growth drivers for the fiscal year 2026. The reiteration of the Buy rating follows encouraging trends in new product adoption and net spending.
A consulting partner indicated that the net renewal mix in the fourth quarter was approximately 25%, with 40% of deals increasing in size and 15% decreasing, marking the highest positive spread in nine quarters. Additionally, around 20-25% of deals included Agentforce, a significant increase from 0% in the previous quarter. Data Cloud was part of approximately 33% of deals, up from 17% in the third quarter, and about 10% of deals included Einstein 1, compared to 8% previously.
These figures suggest a robust uptake of Salesforce’s new products, which Wood believes points to highly encouraging directional trends in product adoption and spending. The analyst’s confidence is further bolstered by the expectation of a consistent cRPO beat cadence, underlining the company’s growth trajectory.
In other recent news, Salesforce is engaged in discussions with major cloud providers, including Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL), and Oracle (NYSE:ORCL), about a potential cloud agreement valued at over $1 billion. This move is part of Salesforce’s strategy to expand its use of public cloud services to support its AI product offerings. Meanwhile, BMO Capital Markets has adjusted its price target for Salesforce to $375, down from $425, while maintaining an Outperform rating. Concerns over initial revenue guidance related to Salesforce’s new product, Agentforce, influenced this decision.
Stifel analysts maintained a Buy rating for Salesforce with a $425 price target, citing growing interest and investment in Agentforce as key factors. They expect the upcoming earnings call to focus on the opportunities presented by Agentforce and its potential impact on revenue growth. Evercore ISI also reiterated an Outperform rating with a $420 price target, highlighting the expected strong performance in Salesforce’s fourth fiscal quarter and the positive impact of Agentforce. Despite some anticipated softness in first-quarter guidance, Evercore ISI believes the long-term outlook remains positive.
Additionally, Salesforce Ventures participated in a $305 million funding round for Together AI, a startup focused on AI computing. This investment aligns with Salesforce’s broader strategy of supporting AI development and innovation. These developments reflect Salesforce’s ongoing efforts to leverage strategic partnerships and product innovations to drive future growth.
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