Salesforce (NYSE:CRM) was lifted to Outperform from Neutral in a note Thursday, with analysts raising the price target for the stock to $300 from $240 per share.
Analysts said their firm likes the software group for 2024, with the potential for lower rates and soft-landing supporting the initial return of front-office spend.
Focusing on CRM, the Baird analysts acknowledged that they underestimated the company's willingness to deliver margins, which drove strong performance last year.
However, with its "current valuation (~25x NTM FCF) near historical lows, top-line growth and expectations muted (Street +11% next two years)," the firm sees upside for the stock from current levels.
"Price increases, the potential return of front office spend, and crisper sales execution should drive upside," the analysts added.