On Tuesday, Raymond (NS:RYMD) James confirmed its strong confidence in Salesforce.com, Inc. (NYSE: NYSE:CRM), maintaining a Strong Buy rating and a price target of $350.00.
The firm's analysis highlighted Salesforce's robust performance, with shares climbing approximately 4% in after-hours trading due to a healthy top-line and a beat on Remaining Performance Obligations (RPO) for the quarter. The growth outlook for the fourth quarter is seen as consistent with prior expectations.
"We're encouraged to see continued strength in Salesforce™s flagship Sales and Service Clouds, which grew above the corporate average in the low double digits despite being significantly larger than other segments," the firm said.
Salesforce's Free Cash Flow (FCF) also exceeded the analyst's model by 10%, signaling effective margin leverage across most operating expense (opex) line items. This financial discipline is projected to contribute to an estimated 33% margin by the fiscal year 2025.
In other recent news, Salesforce has been in the spotlight with several analysts adjusting their outlook on the company. DA Davidson increased its price target from $250 to $300, maintaining a neutral rating. The firm pointed to Salesforce's sustained leadership in the CRM market and potential to surpass Fiscal Year 2026 earnings per share estimates. CFRA, on the other hand, increased its 12-month price target from $343.00 to $380.00, maintaining a strong buy rating, citing potential growth driven by the company’s AI strategy.
Piper Sandler showed increased confidence in Salesforce, raising its price target to $395 from $325, and maintaining an Overweight rating. The firm's analyst cited the introduction of AI agents through new offerings such as Agentforce as pivotal for the company's future performance. Morgan Stanley (NYSE:MS) reiterated its Overweight rating and $330.00 stock price target on Salesforce, optimistic about the potential of its Agentforce platform. Truist Securities increased the price target to $380 from the previous $315 while maintaining a Buy rating, reflecting growing confidence in Salesforce's new product catalysts.
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