Salesforce Beats on Monster Earnings
Salesforce, a software giant, surprised Wall Street with several positive announcements on their earnings call on Wednesday. The company plans to disband the M&A committee, which has been driving costly purchases of names like Slack and MuleSoft. Salesforce also promised to hit 30% operating margins by early 2024, up from mid- to high-20s currently. Additionally, they revealed a new $20 billion stock buyback program. As a result, Salesforce shares surged 12% in afternoon trading on Thursday, hovering near $190.
Analysts have expressed their positive opinions about the company’s announcements. Dan Ives of Wedbush, who has an Outperform rating and a $220 price target for the stock, said that “with activists swirling and Street frustration at a boiling point, Benioff & Co. with its back against the wall delivered a monster quarter and guide for the ages that will silence the doubters.” Brent Thill of Jefferies, who has a Buy rating and a $250 price target, said that “Salesforce delivered the trifecta — growth, margins, and share buybacks.” Goldman Sachs’ Kash Rangan has a Buy rating and a $320 price target, and he believes that “F4Q23 should change the narrative towards the path to profitable growth and reinforce our belief (articulated last week) that Salesforce is at an inflection point that can vault it into the upper echelons of highly valued tech companies.”
CRM Stock Price Forecast & Analysis
According to the Salesforce.com Inc stock forecasts provided by 57 analysts, the average analyst target price for the company’s stock over the next 12 months is USD 198.55. This suggests a potential upside of approximately 18% from the current stock price of USD 167.35 (as of the last closing).
Additionally, the average analyst rating for Salesforce.com Inc is “Strong Buy,” indicating that analysts are optimistic about the company’s future performance. This rating is based on a consensus of the opinions of the 57 analysts who cover the stock.
Stock Target Advisor, a stock analysis firm, also provides its own analysis of Salesforce.com Inc’s stock. According to their analysis, the company’s stock is “Slightly Bullish.” This rating is based on four positive signals and three negative signals that Stock Target Advisor has identified.
In terms of recent performance, Salesforce.com Inc’s stock price has increased by +2.44% over the past week, but has decreased by -2.60% over the past month and -19.89% over the last year. These figures suggest that the stock has been somewhat volatile in the short term, but has experienced significant losses over the longer term.