From Financial Modeling Prep: 2024-12-03 10:24:00

CFRA analysts raised Salesforce.com’s price target to $380, citing growth stabilization and margin expansion potential supported by AI monetization. The new target is based on a projected 30x P/E ratio for 2026 EPS estimates, with earnings projections of $10.07 for 2025, $11.10 for 2026, and $12.68 for 2027.

Salesforce is expected to report $9.3 billion in revenue and $2.45 EPS for the October-quarter, with guidance aligning closely with market expectations of $10 billion in revenue and $2.65 EPS for the next quarter. Analysts anticipate easier comparisons ahead and increased AI monetization driving renewed momentum.

The company’s AI strategy, including Agentforce rollout, is expected to gain traction in enterprise markets by the second half of 2025. Salesforce’s usage-based pricing approach is seen as balancing subscription revenue pressure, with net cash reserves of $9.2 billion and anticipated free cash flow exceeding $13 billion by 2026.

Analysts project further upside for Salesforce as it leverages AI initiatives and broadens its enterprise appeal, with a Strong Buy rating and a price target of $380. Earnings projections for 2025, 2026, and 2027 remain strong, with revenue and EPS expectations in line with market consensus for upcoming quarters.



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