Salesforce stock target raised, hold rating retained on growth focus

Published 29/08/2024, 16:06
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On Thursday, TD Cowen showed a positive outlook on sales of Salesforce.com (NYSE:CRM), as the firm increased the software giant's price target to $290 from $285, while keeping a Hold rating on the stock.

Salesforce recently reported its second-quarter calculated remaining performance obligation (cRPO) growth at 11% on a constant currency basis, surpassing its own guidance of 10%. However, the company's third-quarter revenue growth guidance of approximately 7% was slightly below the Street's expectations of around 8%. Despite these mixed results, Salesforce's full-year 2025 revenue guidance remained unchanged.

The company is facing ongoing challenges due to the tough macroeconomic environment and headwinds in seat growth. Moreover, the second half of the year is expected to present tougher comparisons.

Salesforce's new AI agent platform, AgentForce, has been identified as a significant new area of growth focus within the realm of artificial intelligence. There is an anticipation of considerable attention on this development at the upcoming Dreamforce event in September. Following the announcement, Salesforce shares saw an after-hours increase of 3%.

The adjustment in the stock price target to $290 reflects these recent developments and the potential impact of AgentForce on Salesforce's growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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