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Investing.com - TD Cowen has maintained its Buy rating on salesforce.com (NYSE:CRM) with a price target of $305.00, citing encouraging momentum in the company’s AgentForce product. This target aligns closely with InvestingPro’s Fair Value assessment, suggesting the stock is currently undervalued at its price of $238.72.
The cloud software giant reported third-quarter revenue in line with expectations, while current remaining performance obligation (cRPO) came in approximately 2% ahead of forecasts. With impressive gross profit margins of 77.73% and total revenue of $40.32 billion, Salesforce continues to demonstrate strong fundamental performance. The company also provided fourth-quarter organic revenue and cRPO guidance that aligned with market expectations.
TD Cowen expressed optimism about salesforce.com’s bookings and pipeline, noting that management reiterated targets for growth re-acceleration. The firm highlighted positive indicators in the company’s AgentForce product line.
Specifically, TD Cowen pointed to accelerated new paid customer additions for AgentForce alongside increasing credits utilization from the existing customer base, suggesting growing adoption of the AI-powered offering.
The research firm indicated it has become "a bit more constructive" on the stock’s positioning heading into the fourth quarter based on these developments.
In other recent news, Salesforce reported its latest earnings, delivering in-line revenue results while exceeding expectations on several key financial metrics, including current remaining performance obligation, billings, and profitability. Following these results, RBC Capital maintained its Sector Perform rating with a $250 price target. Piper Sandler also kept its Overweight rating and $315 price target, citing significant progress in Salesforce’s artificial intelligence offerings, with notable growth in its Agentforce annual recurring revenue.
DA Davidson adjusted its price target for Salesforce from $225 to $235, maintaining a Neutral rating, after the company’s quarterly report showed stronger-than-expected bottom-line performance despite lower-than-expected revenue. Bernstein raised its price target slightly to $223 while maintaining an Underperform rating, noting that the results were in line but did not alleviate concerns about Salesforce’s position in the AI transformation. Cantor Fitzgerald reaffirmed its Overweight rating and a $325 price target, highlighting the company’s upside in contracted revenue pipeline and operating margin, though cash flow from operations was slightly below expectations.
These developments reflect a mixed but generally positive sentiment from analysts regarding Salesforce’s recent performance and future prospects.
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