7 Salesforce Analysts On Q4 Earnings: 'Nearly Everything Investors Could Hope For'

Zinger Key Points
  • Although uncertainties remain, Salesforce seems to be heading in the right direction, one analyst says.
  • The company’s guidance came in much better than expected, another analyst stated.

Shares of Salesforce Inc CRM were rallying Thursday morning after the company reported a fourth-quarter beat. Here's what the Street has to say. 

JMP Securities On Salesforce

Analyst Patrick Walravens reiterated a Market Outperform rating and price target of $250.

Salesforce reported “very strong” quarterly results and issued better-than-expected guidance, Walravens said in a note. “We continue to like Salesforce and believe it provides an attractive opportunity for capital appreciation,” he added.

RBC Capital Markets On Salesforce

Analyst Rishi Jaluria maintained an Outperform rating while raising the price target from $165 to $225.

“In our view, the quarter provided nearly everything investors could hope for during a period of time when the company is under pressure to do so from the five major activists involved in the name,” Jaluria wrote in a note.

“While there is certainly more work to do, we believe Salesforce is headed in the right direction and came away incrementally constructive,” he added.

BMO Capital Markets On Salesforce

Analyst Keith Bachman reiterated an Outperform rating while raising the price target from $185 to $230.

“After three months of internal changes, uncertainty, and low expectations, we think Salesforce delivered a solid quarter and planted a meaningful flag in the new company direction towards higher profitability,” Bachman said.

“Margin improvement will be helped by better-than-expected growth over the next 12-24 months, as well as heightened focus on S&M and G&A efficiency,” he added.

“Net, we think valuation is attractive and envision some upside to profit longer-term given the clear commitment by management and the board,” the analyst further mentioned.

Check out other analyst stock ratings.

Needham On Salesforce

Analyst Scott Berg upgraded Salesforce from Hold to Buy while keeping the price target unchanged at $230.

Berg said the upgrade comes after six years of being on the sidelines. He added that the company’s “FY24 profitability guidance better aligns its cost structure with its intermediate term growth outlook.

“The initial FY24 27% operating margin guidance implies 450bps of leverage and the initial 1Q25 guidance of 30% suggests another 300bps in FY25,” the analyst said.

Wedbush On Salesforce

Analyst Daniel Ives maintained an Outperform rating and raised the price target from $200 to $220.

“Salesforce reported earnings that featured a strong top and bottom line beat and a very impressive guide in this macro as the company experienced strong performance in Mulesoft and Tableau, with some slight improvements in FX,” Ives wrote in a note.

“CRM gave guidance that was much better than expected with a FY24 outlook that has strong growth and margins on their trajectory heading towards the elusive 30% goal a few years before the Street ever thought they would see it,” he added.

Piper Sandler On Salesforce

Analyst Brent Bracelin reiterated an Overweight rating while raising the price target from $171 to $230.

“EPS increased 100% y/y to $1.68, hinting at a material profit unlock potential driven by a 29% non-GAAP operating margin,” Bracelin said.

“While the double-digit FY24 top-line growth outlook of ~10% was better-than-feared given the challenged macro environment, the full-year operating margin guide of ~27% is likely to steal the spotlight as commentary around new operating & GTM initiatives suggest Salesforce is undergoing a structural shift in its margin profile,” he added.

Bernstein On Salesforce

Analyst Mark Moerdler reaffirmed an Underperform rating while raising the price target from $119 to $145.

“This was a very important earnings for Salesforce given the sharp decline in revenue growth and the substantial pressure from investors and activists for the company to finally show meaningful margin improvement,” Moerdler wrote.

"Management pulled out all the stops guiding to ~450bps YoY margin improvement in FY24 and another ~300bps of margin improvement in FY25 as well as return of cash and the dissolution of the company M&A board committee,” he added.

CRM Price Action: Shares of Salesforce were trading 11.83% higher at $187.12 Thursday morning. 

Photo courtesy of Salesforce. 

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Posted In: Analyst ColorEarningsNewsUpgradesPrice TargetReiterationTop StoriesAnalyst RatingsMoversTrading IdeasBernsteinBMO Capital MarketsBrent BracelinDaniel IvesExpert IdeasJMP SecuritiesKeith BachmanMark MoerdlerNeedhamPatrick WalravensPiper SandlerRBC Capital MarketsRishi JaluriaScott BergWedbush
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