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Yahoo
14 hours ago
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Salesforce (CRM) Just Crushed Earnings – So Why Is This Analyst Still Bearish?
We recently published a list of . In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks on Wall Street's radar. On May 29, DA Davidson analyst Gil Luria raised the price target on Salesforce, Inc. (NYSE:CRM) to $225.00 (from $200.00) and maintained an 'Underperform' rating. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. The firm's rating update follows Salesforce's recent earnings report, demonstrating better-than-anticipated results. It reported first-quarter revenue of $9.83 billion, up 8% year-over-year and topping the analyst consensus from Visible Alpha. Meanwhile, adjusted net income was $2.5 billion, or $2.58 per share, rising from $2.41 billion, or $2.44 per share, in the year-ago quarter, also beating estimates. A customer service team in an office setting using the company's Customer 360 platform to communicate with customers. Despite the positive performance, DA Davidson has pointed out concerns about the company's future growth prospects. The firm noted how Salesforce's future outlook has been adjusted to account for foreign exchange impacts and a modest first-quarter beat. It also said that growth in Salesforce's core cloud segments is slowing. However, it is being partially offset by positive developments in sectors such as data cloud and artificial intelligence. Salesforce's committed remaining performance obligations (cRPO) growth was also discussed, which was one percentage point higher than anticipated. Nevertheless, guidance for the second quarter was slightly below expectations, suggesting that the company may experience single-digit constant currency (CC) growth for the first time in its history. Overall, the firm has increased the price target on the stock, but its underperform rating signifies the firm's reservations regarding its stock performance relative to the market. Overall, CRM ranks 3rd on our list of AI stocks on Wall Street's radar. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
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Morgan Stanley Maintains Overweight on Salesforce (CRM), Sees Long-Term Value in Informatica Deal
We recently published a list of . In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks on latest news and ratings. On May 28, Morgan Stanley analyst Keith Weiss reiterated an 'Overweight' rating on Salesforce, Inc. (NYSE:CRM) with a $393.00 price target. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. According to the firm, the company's recent acquisition of Informatica may not have been what the market expected, but its terms are seen as favorable. It announced the agreement to acquire Informatica for an estimated $8 billion in equity value. A customer service team in an office setting using the company's Customer 360 platform to communicate with customers. The firm discussed concerns about Informatica's legacy, particularly on-premise data assets, which may not match with investor expectations for Salesforce's growth vision. In other words, there are fears that Informatica might not be a good strategic fit, but the firm believes that the terms of the deal are advantageous. Moreover, Informatica's strengths in handling, organizing, and securing data may help boost Salesforce's Data Cloud and allow its AI tool, Agentforce, to work better. It also believes that the move will help Salesforce improve its operating margins, earnings per share (EPS), and FCF in FY28 (CY27) driven by substantial cost synergies. Overall, CRM ranks 3rd on our list of AI stocks on latest news and ratings. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Salesforce (CRM) Gets $425 Price Target as Analyst Backs Informatica Deal and AI Push
We recently published a list of . In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks gaining Wall Street's attention. One of the most notable analyst calls on Tuesday, May 27, was for Salesforce, Inc. (NYSE:CRM). Wedbush analyst Daniel Ives reiterated an 'Outperform' rating on the stock with a $425.00 price target. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. A customer service team in an office setting using the company's Customer 360 platform to communicate with customers. Wedbush has commented about the recent deal between Salesforce and Informatica, citing that the proposed acquisition of enterprise cloud software company Informatica is the 'right deal at the right time' for Salesforce. 'Despite CRM not pursuing a big deal of this size since Slack in 2021 for $28 billion, we view this deal as a smart and strategic deal for customer acquisition as INFA's strong customer base of over 5,000 customers, including ~2,500 cloud subscription ARR customers and over 80% of the Fortune 100, leverages this technology for analytics and AI-powered processes which could strengthen CRM's AI strategy.' The analysts further noted that the deal would pave the way for more artificial intelligence opportunities for Salesforce, and even more cross-selling opportunities. Overall, CRM ranks 3rd on our list of AI stocks gaining Wall Street's attention. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Salesforce (CRM)'s AI Push Won't Show Up Yet – Here's Why Goldman Still Says Buy
We recently published a list of . In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks that are on analyst's radar today. On May 27, Goldman Sachs analyst Kash Rangan reiterated a 'Buy' rating on Salesforce, Inc. (NYSE:CRM) with a $340.00 price target. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce. Despite its popularity, Rangan believes that Agentforce's revenue contribution isn't likely to be very material heading into earnings. Artificial intelligence is going to be a key topic of conversation, but significant updates on revenue contribution for Salesforce may not be until the Dreamforce event on October 14, 2025. The company is anticipated to report a 7% increase in revenue, a 10% rise in current remaining performance obligations (cRPO), a non-GAAP operating margin (OpM) of 33%, and a non-GAAP earnings per share (EPS) of $2.56. The firm believes that Salesforce will maintain net new revenue levels comparable to fiscal year 2024. A customer service team in an office setting using the company's Customer 360 platform to communicate with customers. Moreover, even though there are certain challenges such as the Department of Justice's oversight, small and medium-sized business execution, and transitions in the CFO/COO roles, stable software spending trends and the company's strategic long-term investments will likely help Salesforce increase its market share. 'We reiterate our Buy rating and $340 price target on Salesforce ahead of F1Q26 earnings (5/28). While artificial intelligence likely remains a focal point, we don't anticipate material updates on Agentforce's revenue contribution until Dreamforce (10/14). In the meantime, we look toward other strength points from Data Cloud and AI (>$900 million annual recurring revenue). Heading into earnings, we expect revenue +7%, current remaining performance obligations +10%, non-GAAP operating margin of 33%, and non-GAAP EPS of $2.56. We feel comfortable with these and for Salesforce to exit FY26 at similar net new revenue levels as FY24, where overhangs from an elevated investment period can be comparable to FY26's perceived risks. We believe current guidance (+7–8% growth) and stock performance year-to-date (−17% vs. Nasdaq flat) has adequately accounted for: 1) Incremental pressure to Public Sector ($5.7 billion ARR in F4Q25) associated with DOGE, 2) Small/Medium Business and Create-and-Close execution, 3) CFO/COO transition. With broader software citing largely stable spending trends, we see Salesforce well-positioned to capture greater wallet share with the maturation of strategic long-term investments, coupled with emerging product momentum that could compound and support revenue re-acceleration. We further note F1Q cRPO growth is typically not a material forward indicator and see limited upside to Street expectations (10% YoY constant currency), whereas F2Q cRPO guidance will likely be a focal point. Despite modest incremental FX tailwind, we don't expect an upward revision to FY26 revenue. We continue to see Salesforce capable of delivering durable growth, 35%+ operating margin, and achieving $17–18 free cash flow per share in FY27, offering a compelling risk/reward at 17x EV/CY26 free cash flow (vs. peers' ~28x).' Overall, CRM ranks 3rd on our list of AI stocks that are on analyst's radar today. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Salesforce acquires Informatica for $8 billion
Salesforce has acquired cloud data management firm Informatica in an $8 billion equity deal, marking a major move in its push to strengthen its AI and data infrastructure capabilities. The announcement, made Tuesday, comes about a year after early rumors of the acquisition sent both companies' stock prices sliding. At the time, Informatica denied it was for sale, but a lot can change in a year. Under the terms of the deal, Salesforce will pay $25 in cash per share for Informatica's Class A and Class B-1 common stock, adjusting for its prior investment in the company. Informatica was founded in 1993 and works with more than 5,000 customers across more than 100 countries. The company had a $7.1 billion market cap at the time of publication. This acquisition will help bolster Salesforce's agentic AI ambitions, the company's press release stated, by giving the company more data infrastructure and governance to help its AI agents run more "safely, responsibly, and at scale across the modern enterprise." "Together, we'll supercharge Agentforce, Data Cloud, Tableau, MuleSoft, and Customer 360, enabling autonomous agents to act with intelligence, context, and confidence across every enterprise," Salesforce CEO Marc Benioff said in the press release. "This is a transformational step in delivering enterprise-grade AI that is safe, responsible, and deeply integrated with the world's data.' The path to this deal began in April 2024, when reports surfaced that Salesforce was eyeing Informatica. The market reaction was swift — both companies' shares dipped on fears of a difficult integration or strategic mismatch. Informatica later issued a public statement denying any sale discussions. But what once seemed unlikely is now official. Informatica isn't the first data management company Salesforce has acquired in the past year. In September, Salesforce snapped up Own Company for $1.9 billion in cash. 'Data security has never been more critical, and Own's proven expertise and products will enhance our ability to offer robust data protection and management solutions to our customers,' Salesforce general manager Steve Fisher said in a press release at the time. TechCrunch has reached out to Salesforce for more information. This article originally appeared on TechCrunch at
