RBC Capital analyst Rishi Jaluria maintained a bullish outlook on Salesforce Inc (CRM) with an Outperform rating and a $240 price target.
Jaluria attended the Dreamforce conference in San Francisco, where he listened to various keynotes and spoke to multiple partners.
The demand for Salesforce’s AI technology remains strong. The company is currently focused on integrating its platform and establishing a solid data foundation to fully leverage AI capabilities. Salesforce also announced freemium offerings for its Data Cloud and Tableau, as well as plans for a Pharma CRM system.
Jaluria’s projections for Q3 include a revenue of $8.71 billion, surpassing the consensus estimate of $8.12 billion, and an EPS of $2.05, higher than the consensus of $1.92.
Needham analyst Scott Berg reiterated a Buy rating on Salesforce with a price target of $250.
Berg reassessed his stance after attending the Dreamforce conference, where he found the overall sentiment to be more optimistic than anticipated. He was particularly impressed by the new and existing AI-enabled functionality showcased at the event.
Despite the positive reception of Salesforce’s AI offerings, Berg expressed concern about the monetization of these capabilities, with mixed feedback received regarding selling an SKU in the Service Cloud.
The additional AI functionality strengthens Salesforce’s competitive position, although its ability to generate revenue from these advancements remains uncertain.
The analyst estimates a Q3 revenue of $8.71 billion and an EPS of $2.06.
In terms of price action, CRM shares were trading lower by 2.00% at $214.40 as of the last check on Friday.
