From Morningstar: 2024-08-30 04:55:00

Salesforce (CRM) saw its fair value estimate raised to $290 per share, up from $285, after posting strong second-quarter results and maintaining full-year revenue guidance. The company reported revenue of $9.33 billion, up 8% year over year, with upside on both the top and bottom lines.

Recent trends show strength in multi-cloud deals and vertical domain sales, driving relative strength compared to expectations. The new Agentforce platform presents a long-term opportunity for the company to transition to a mostly virtual agent pool, with monetization on a per-conversation basis. Shares still have upside potential, but the window has narrowed.

President and CFO Amy Weaver announced her departure from Salesforce, a significant loss for the company. Revenue rebounded nicely this quarter, with total revenue rising to $9.33 billion, beating guidance. Both subscriptions and professional services exceeded expectations, with strong performance across solutions like multi-cloud and various verticals.

Morningstar metrics show a fair value estimate of $290.00 per share for Salesforce, along with a Morningstar Rating of ★★★, a Wide Economic Moat Rating, and a High Uncertainty Rating. Salesforce continues to demonstrate strength and potential for growth, despite some challenges in the macroeconomic environment.



Read more at Morningstar: Salesforce Earnings: Nice Rebound Quarter, Fair…