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Investing.com - Wolfe Research has reiterated an Outperform rating and $310.00 price target on Salesforce (NYSE:CRM) following the company’s Analyst Day event. The target aligns with InvestingPro analysis, which indicates Salesforce is currently undervalued, with analysts’ targets ranging from $221 to $430.
The research firm described the presentation as "A+ Analyst Day," noting that Salesforce expressed confidence in achieving double-digit organic growth CAGR to reach $60+ billion in revenue by fiscal year 2030, representing approximately 10% of a $628 billion total addressable market. The company’s current revenue stands at $39.5 billion with an impressive 77.65% gross profit margin.
Salesforce also plans to achieve a "Rule of 50" with high 30’s margins, according to Wolfe Research’s calculations, while announcing plans to repurchase an additional $7 billion in shares.
The firm highlighted several positive metrics, including accelerating bookings, 20,000 AI-focused customers, and 150+ enterprise license agreements with 3-4x ARR uplifts. Wolfe Research also noted that September was "the best month for SMB in a while," with growth exceeding 20%, while leading LLMs have expanded spending by 3x. InvestingPro data reveals the company maintains a perfect Piotroski Score of 9, indicating strong financial health. Get access to 8 more exclusive ProTips and comprehensive analysis with InvestingPro.
Wolfe Research’s survey indicated improving conditions, with 51% of customers expecting to adopt Salesforce’s AI features over the next twelve months, 29% planning to adopt Data Cloud, and 20% of customers planning to spend significantly more than last year, compared to just 7% in the previous year.
In other recent news, Salesforce has been a focal point for analysts and industry observers following its Dreamforce conference and Analyst Day. Needham maintained its Buy rating and a $400 price target for Salesforce, emphasizing the company’s significant AI investments, particularly in large language model applications. Stifel also reiterated a Buy rating with a $300 price target, highlighting Salesforce’s introduction of Agentforce 360, which enhances agentic capabilities and features. Raymond James continues to support Salesforce with a Strong Buy rating and a $375 price target, noting the company’s efforts to address AI dynamics and establish new growth metrics. On a different note, RBC Capital maintained its Sector Perform rating with a $250 price target, acknowledging Salesforce’s transition from Customer 360 to Agentforce 360, which centers around AI agents and contextual data. Additionally, Salesforce announced a collaboration with Stripe and OpenAI to develop an Instant Checkout integration using the Agentic Commerce Protocol, aiming to streamline AI-powered shopping experiences. These developments reflect Salesforce’s strategic focus on AI and innovation, drawing attention from various analyst firms.
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