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On Friday, Wolfe Research adjusted its financial outlook for Salesforce.com (NYSE:CRM), raising the price target to $340 from the previous $290, while maintaining an Outperform rating on the company’s shares. The upgrade follows Wolfe Research’s attendance at Salesforce’s Agentforce World Tour event in New York City, where analysts engaged with partners and customers and conducted a survey. For deeper insights into market valuations and analyst perspectives on technology stocks, InvestingPro offers comprehensive research reports covering 1,400+ US equities, transforming complex Wall Street data into actionable intelligence.
The Wolfe Research team observed a shift in sentiment regarding Salesforce’s offerings, noting that discussions have progressed beyond the initial hype and fear of missing out (FOMO) to genuine customer adoption and excitement. The firm acknowledges that while implementation and proof of concept to go-live stages are slower than some might expect, with top partners reporting only about 10% of pilots going live to date, there is anticipation for a significant increase in live implementations by November.
Analysts at Wolfe Research also highlighted the enthusiasm from partners regarding Salesforce’s new pricing model, which is expected to be a substantial factor in accelerating adoption. The new model, deemed more affordable, is particularly well-received for internal use cases where the previous cost of $2 per conversation was considered prohibitive for simpler applications.
Additionally, the conversation around Salesforce often included mentions of Voice as an emerging area of excitement, particularly in relation to Twilio (NYSE:TWLO), although the report focused on Salesforce’s prospects. According to InvestingPro data, Twilio boasts a market capitalization of $17.3 billion and has demonstrated impressive performance with a 92% return over the past year. The company maintains strong financial health with a current ratio of 4.78 and revenue growth of 9.3%. The customer survey conducted by Wolfe Research, which included over 50 participants, showed a growing interest in adopting Agentforce, with about 50% planning to adopt the platform. Data Cloud adoption was also on the rise, with 33% of respondents indicating plans to adopt compared to 20% in December.
The survey further revealed that while overall spend intensity had mixed responses, there was a notable increase in those expecting a significant rise in spending. Adoption intent was strongest in sales use cases, followed by customer support and internal applications.
In summary, Wolfe Research’s analysis of Salesforce’s market position and product offerings, bolstered by partner and customer feedback, has led to increased confidence in the company’s growth trajectory. This has resulted in the firm reiterating its Outperform rating and raising the price target for Salesforce stock to $340. Notably, InvestingPro analysis indicates that Twilio shows potential for continued growth, with 16 analysts recently revising their earnings estimates upward. Subscribers can access 12 additional ProTips and detailed financial metrics through the platform’s comprehensive research tools.
In other recent news, Twilio has been the subject of several analyst updates and strategic announcements. The company’s SIGNAL 2025 conference has been a focal point, showcasing new product developments and partnerships. Twilio’s collaboration with Microsoft (NASDAQ:MSFT) aims to enhance conversational AI solutions, integrating Twilio’s communication platform with Microsoft’s Azure AI infrastructure. This partnership is expected to improve customer interactions across various channels.
Analyst firms have responded positively to Twilio’s recent activities. JMP Securities maintained its Market Outperform rating with a price target of $165, while Wolfe Research increased its price target to $155, citing strong customer demand and Twilio’s strategic initiatives. Goldman Sachs reiterated a Buy rating, maintaining a $145 price target, highlighting Twilio’s efforts to expand its platform within the Customer Experience as a Service market.
Meanwhile, Stifel has held steady with a Hold rating and a $110 price target, acknowledging Twilio’s progress in AI integration. The SIGNAL 2025 event also introduced new features such as ConversationRelay and Voice Intelligence, which are now available for use. These developments, along with Twilio’s strategic partnerships, underscore the company’s ongoing efforts to enhance its product offerings and market position.
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