Citi analysts lifted the firm's price target on Salesforce (NYSE:CRM) to $229 from $210, maintaining a Neutral rating on the stock ahead of its upcoming earnings release.
The analysts said the firm expects some top-line uncertainty, but they see confidence in margins.
"Checks with Salesforce partners during the Q were mixed but not significantly worse than what we heard in 4Q22," they wrote.
"We believe there is limited upside to top-line numbers for the FY as we still see a lot of macro uncertainty and 'Salesforce fatigue' affecting renewals and exposing CRM to seat-based churn."
However, Citi sees a greater potential on the margin front. "We'd look to get more constructive on sustained cost optimizations or further RIFs," the analysts added.
Citi left its FY24 top-line estimate for CRM unchanged but increased margins "given further signs of efficiency."
Salesforce shares are trading more than 1% higher Friday, above the $213 mark.