Latest news with #KashRangan
Yahoo
28-05-2025
- 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
Globe and Mail
22-05-2025
- Business
- Globe and Mail
How Should You Play Microsoft Stock as Lumma Malware Hits 394,000 Windows Computers?
Microsoft (MSFT) shares are in focus after the tech behemoth said Lumma malware infected nearly 400,000 Windows computers globally between March 16 and May 16. Hackers use Lumma to steal passwords that enable them access to users' bank accounts, credit cards, and cryptocurrency wallets. Microsoft stock registered a muted response to the news and is currently up a tad more than 30% versus its year-to-date low. Is Microsoft Stock a Buy Despite Lumma News? Wall Street firms are keeping positive on MSFT shares despite the Lumma announcement as well. Goldman Sachs, for example, raised its price target on Microsoft stock this week to $550, indicating potential upside of more than 22% from current levels. According to the firm's analysts led by Kash Rangan, announcements the company made at its annual 'Build' conference inspire confidence in its AI investments. 'These investments help position MSFT at the forefront of the developer tool ecosystem and help establish a robust and interoperable ecosystem for agentic AI,' he told clients in a recent note. AI Investments to Unlock Upside in MSFT Shares The Goldman Sachs analyst is bullish on the full range of AI tools that Microsoft has launched in recent years. These include the titan's Model Context Protocol, GitHub Copilot, Azure AI Foundry, and Copilot Studio – all of which are seeing booming customer growth. All in all, the investment firm sees MSFT shares as strongly positioned to benefit from a shift of generative artificial intelligence from the 'Infrastructure' layer to 'Platform/Application' layers. Note that artificial intelligence investments have already started reflecting in Microsoft's financials. In April, the Nasdaq-listed firm reported its financial results for its fiscal third quarter that handily topped Street estimates. What's the Consensus Rating on Microsoft? Other Wall Street analysts are just as bullish on Microsoft stock due to its commitment to AI in 2025. The consensus rating on MSFT shares currently sits at 'Strong Buy' with the mean target of about $511 indicating potential upside of nearly 12% from current levels.
Yahoo
20-05-2025
- Business
- Yahoo
Goldman Sachs Hikes Microsoft (MSFT) Target to $550 on AI Momentum
We recently published a list of . In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other AI stocks that are making waves on Wall Street today. The United States recently issued guidance threatening companies not to use advanced computer chips from China, including Huawei's Ascend AI chips. However, China has now urged the country to 'immediately correct its wrongdoings' and stop 'discriminatory' measures against it. A spokesperson for China's Ministry of Commerce has said that the United States has abused its export control measures. He said that the country has imposed stricter restrictions on Chinese chip products based on unfounded allegations, further explaining how the said restrictions contain discriminatory measures and tend to distort the market. The U.S. Commerce Department had issued the guidance last week, with its Bureau of Industry and Security stating that 'these chips were likely developed or produced in violation of U.S. export controls.' 'The U.S. has been abusing export control measures, imposing stricter restrictions on Chinese chip products under unfounded accusations… China firmly opposes this… Trying to trip others won't make oneself run faster.' Opposing the unilateral bullying from the US's end, the Chinese spokesperson said that the restrictions have infringed upon the legitimate rights and interests of Chinese companies. The country has been accused of undermining the preliminary trade agreement reached in Geneva, Switzerland. The spokesperson further urged the country to work with China to jointly safeguard the consensus concluded in the Geneva talks. 'If the United States continues to cause China substantive harm, China will take resolute measures to safeguard its legitimate rights and interests.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Photo by Microsoft 365 on UnsplashMicrosoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. One of the most notable analyst calls on Tuesday, May 20, was for Microsoft Corporation. Analyst Kash Rangan reiterated his 'Buy' rating on the stock and lifted his price target by $70 to $550. Rangan noted that the four-day Build conference has reinforced his confidence in the company's artificial intelligence investments. 'We believe these investments help position Microsoft at the forefront of developer tool ecosystem (seeing some of the most promising early GenAI adoption) and help establish a robust and interoperable ecosystem for agentic AI. This will not only support consumption of AI compute on Azure, but adoption of Microsoft's platforms and applications, all of which become richer and more dynamic with standardized, interconnected tools.' He further highlighted Microsoft's Model Context Protocol as a 'major evolution' in Microsoft's AI ecosystem. The Protocol enables developers to integrate AI models and external systems. Moreover, Microsoft's GitHub Copilot and Copilot Studio were pointed out as two other impressive parts of the company's rapidly scaling AI business. Two other catalysts are the Azure AI Foundry platform for AI agents and the focus on scaling its Azure cloud regions and data centers. 'We continue to believe that as Gen-AI moves from the Infrastructure layer to the Platform/Application layers, Microsoft is well positioned to capitalize on this shift, wherein a more capital efficient and higher margin recurring revenue model could become a reality, just as it did during the on-prem to cloud transition.' Overall, MSFT ranks 2nd on our list of AI stocks that are making waves on Wall Street today. While we acknowledge the potential of MSFT 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 MSFT 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
20-05-2025
- Business
- Yahoo
Goldman Sachs Hikes Microsoft (MSFT) Target to $550 on AI Momentum
We recently published a list of . In this article, we are going to take a look at where Microsoft Corporation (NASDAQ:MSFT) stands against other AI stocks that are making waves on Wall Street today. The United States recently issued guidance threatening companies not to use advanced computer chips from China, including Huawei's Ascend AI chips. However, China has now urged the country to 'immediately correct its wrongdoings' and stop 'discriminatory' measures against it. A spokesperson for China's Ministry of Commerce has said that the United States has abused its export control measures. He said that the country has imposed stricter restrictions on Chinese chip products based on unfounded allegations, further explaining how the said restrictions contain discriminatory measures and tend to distort the market. The U.S. Commerce Department had issued the guidance last week, with its Bureau of Industry and Security stating that 'these chips were likely developed or produced in violation of U.S. export controls.' 'The U.S. has been abusing export control measures, imposing stricter restrictions on Chinese chip products under unfounded accusations… China firmly opposes this… Trying to trip others won't make oneself run faster.' Opposing the unilateral bullying from the US's end, the Chinese spokesperson said that the restrictions have infringed upon the legitimate rights and interests of Chinese companies. The country has been accused of undermining the preliminary trade agreement reached in Geneva, Switzerland. The spokesperson further urged the country to work with China to jointly safeguard the consensus concluded in the Geneva talks. 'If the United States continues to cause China substantive harm, China will take resolute measures to safeguard its legitimate rights and interests.' For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Photo by Microsoft 365 on UnsplashMicrosoft Corporation (NASDAQ:MSFT) provides AI-powered cloud, productivity, and business solutions, focusing on efficiency, security, and AI advancements. One of the most notable analyst calls on Tuesday, May 20, was for Microsoft Corporation. Analyst Kash Rangan reiterated his 'Buy' rating on the stock and lifted his price target by $70 to $550. Rangan noted that the four-day Build conference has reinforced his confidence in the company's artificial intelligence investments. 'We believe these investments help position Microsoft at the forefront of developer tool ecosystem (seeing some of the most promising early GenAI adoption) and help establish a robust and interoperable ecosystem for agentic AI. This will not only support consumption of AI compute on Azure, but adoption of Microsoft's platforms and applications, all of which become richer and more dynamic with standardized, interconnected tools.' He further highlighted Microsoft's Model Context Protocol as a 'major evolution' in Microsoft's AI ecosystem. The Protocol enables developers to integrate AI models and external systems. Moreover, Microsoft's GitHub Copilot and Copilot Studio were pointed out as two other impressive parts of the company's rapidly scaling AI business. Two other catalysts are the Azure AI Foundry platform for AI agents and the focus on scaling its Azure cloud regions and data centers. 'We continue to believe that as Gen-AI moves from the Infrastructure layer to the Platform/Application layers, Microsoft is well positioned to capitalize on this shift, wherein a more capital efficient and higher margin recurring revenue model could become a reality, just as it did during the on-prem to cloud transition.' Overall, MSFT ranks 2nd on our list of AI stocks that are making waves on Wall Street today. While we acknowledge the potential of MSFT 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 MSFT 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.
CNBC
20-05-2025
- Business
- CNBC
Goldman Sachs hikes Microsoft price target, sees AI investments driving strong growth
Goldman Sachs is more confident in Microsoft after the company's announcements at its annual Build developer conference. Analyst Kash Rangan reiterated his buy rating on Microsoft and lifted his price target by $70 to $550, which suggests the stock could gain roughly 19.8% from Monday's close. Rangan said the four-day event, which began Monday, left him with increasing conviction in the company's artificial intelligent investments. "We believe these investments help position Microsoft at the forefront of developer tool ecosystem (seeing some of the most promising early GenAI adoption) and help establish a robust and interoperable ecosystem for agentic AI," Rangan wrote in a Monday note to clients. "This will not only support consumption of AI compute on Azure, but adoption of Microsoft's platforms and applications, all of which become richer and more dynamic with standardized, interconnected tools," he added. MSFT 1Y mountain Microsoft stock performance. Rangan highlighted Microsoft's Model Context Protocol, which enables developers to integrate AI models and external systems, as a "major evolution" in Microsoft's AI ecosystem. Microsoft's GitHub Copilot and Copilot Studio are two other impressive parts of the company's rapidly scaling AI business to Rangan, who pointed out that both technologies have seen user growth. Microsoft announced a GitHub Copilot coding agent — which acts as a fully asynchronous coding agent that can write, run and test code — that the analyst believes could attract more productivity-hungry customers. Other growth catalysts for Microsoft are its Azure AI Foundry platform for AI agents, which has similarly seen booming customer growth, as well as the company's focus on scaling its Azure cloud regions and data centers. "We continue to believe that as Gen-AI moves from the Infrastructure layer to the Platform/Application layers, Microsoft is well positioned to capitalize on this shift, wherein a more capital efficient and higher margin recurring revenue model could become a reality, just as it did during the on-prem to cloud transition," Rangan said. Microsoft remains a favorite on Wall Street. Fifty-six of 63 analysts covering the stock have a strong buy or buy rating, per LSEG. Shares are up roughly 8.9% year to date.
