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On Wednesday, Truist Securities reaffirmed its Buy rating on Salesforce.com shares (NYSE: NYSE:CRM) with a steadfast price target of $400.00. According to InvestingPro data, this target aligns with broader market sentiment, as Salesforce currently maintains a "GREAT" overall financial health score and appears undervalued based on comprehensive Fair Value analysis. The endorsement comes after an update on one of the company's significant growth segments, Salesforce Industries. Terry Tillman, an analyst at Truist Securities, provided insights following a discussion with Jeff Amann, EVP and GM of Salesforce Industries. The division is known for its comprehensive vertical solutions tailored to intricate industry processes and workflows, which often attract premium pricing and are a dynamic source of new business.
Salesforce Industries has reported a notable $5.7 billion in annual recurring revenue (ARR) for the fiscal year 2025, marking a 20% year-over-year increase. This growth is more than double the company's overall revenue growth of 9% for the same period. The company's impressive gross profit margin of 77.19% and robust revenue of $37.9 billion in the last twelve months underscore its strong market position. InvestingPro subscribers can access 14 additional key insights about Salesforce's financial performance and market position. The focus of the update was on the performance of industry solutions, the potential high-value impact of Agentforce, and the synergies between industry solutions and the broader applications and data segments.
Tillman expressed increased confidence in the resilient growth of Salesforce Industries, even against a backdrop of a challenging macroeconomic environment. The analyst's commentary underscores the strength of Salesforce's industry-specific offerings and their contribution to the company's business stability and expansion.
The reiteration of the Buy rating by Truist Securities suggests a continued positive outlook for Salesforce.com's stock performance. The $400.00 price target indicates a significant level of confidence in the company's value and future prospects. Salesforce Industries' robust ARR and its strategic initiatives, such as Agentforce, are expected to play a key role in driving the company's growth trajectory. With an expected EPS of $11.40 for FY2026 and a PEG ratio of 0.74, InvestingPro's comprehensive research report provides detailed analysis of Salesforce's growth potential and market positioning among its peers.
In other recent news, Salesforce has increased its quarterly cash dividend by 4%, setting the new payout at $0.42 per share, scheduled for distribution in April 2025. This move reflects the company's commitment to delivering shareholder value and confidence in its financial stability. Additionally, Salesforce has issued equity awards to new employees from its acquisitions of Own Company and Zoomin, aligning with its strategy to integrate and retain talent. Truist Securities has reiterated a Buy rating on Salesforce, maintaining a $400 price target, citing growth drivers like Data Cloud and AI/Agentforce as potential catalysts for future performance. The firm's analysis suggests a de-risked revenue guidance and strong capital allocation strategy as positive indicators.
TD Cowen also maintains a Buy rating on Salesforce, with a $375 price target, following its fourth-quarter results that showed an 11% growth in current remaining performance obligations. Despite slightly conservative guidance for subscription growth, the strength of Salesforce's Data Cloud and plans to increase sales hiring are seen as promising. A recent Salesforce report highlights the growing importance of AI agents in the retail sector, with 76% of retailers planning to increase AI investments. These developments underscore Salesforce's strategic initiatives and market presence in AI-driven solutions.
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