Salesforce (NYSE:CRM) underwent analysis by 27 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 9 | 12 | 6 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 4 | 6 | 4 | 0 | 0 |
| 2M Ago | 0 | 2 | 0 | 0 | 0 |
| 3M Ago | 5 | 4 | 1 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $351.96, with a high estimate of $450.00 and a low estimate of $270.00. Observing a 14.87% increase, the current average has risen from the previous average price target of $306.40.
Diving into Analyst Ratings: An In-Depth Exploration
The analysis of recent analyst actions sheds light on the perception of Salesforce by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Tyler Radke | Citigroup | Raises | Neutral | $368.00 | $290.00 |
| Terry Tillman | Truist Securities | Raises | Buy | $380.00 | $315.00 |
| Daniel Ives | Wedbush | Raises | Outperform | $375.00 | $325.00 |
| Karl Keirstead | UBS | Raises | Neutral | $360.00 | $275.00 |
| Patrick Walravens | JMP Securities | Raises | Market Outperform | $450.00 | $342.00 |
| J. Derrick Wood | TD Cowen | Raises | Hold | $340.00 | $290.00 |
| Brian Schwartz | Oppenheimer | Raises | Outperform | $385.00 | $330.00 |
| Mark Murphy | JP Morgan | Raises | Overweight | $340.00 | $310.00 |
| Allan Verkhovski | Scotiabank | Announces | Sector Outperform | $425.00 | - |
| Keith Bachman | BMO Capital | Raises | Outperform | $385.00 | $305.00 |
| Yun Kim | Loop Capital | Raises | Hold | $340.00 | $270.00 |
| Brad Sills | B of A Securities | Raises | Buy | $390.00 | $325.00 |
| Michael Turrin | Wells Fargo | Raises | Equal-Weight | $330.00 | $275.00 |
| Brent Thill | Jefferies | Raises | Buy | $400.00 | $350.00 |
| Parker Lane | Stifel | Raises | Buy | $350.00 | $320.00 |
| Brian Schwartz | Oppenheimer | Raises | Outperform | $330.00 | $300.00 |
| Nehal Chokshi | Northland Capital Markets | Raises | Outperform | $400.00 | $270.00 |
| Daniel Ives | Wedbush | Raises | Outperform | $325.00 | $315.00 |
| Brent Bracelin | Piper Sandler | Raises | Overweight | $325.00 | $268.00 |
| Scott Berg | Needham | Maintains | Buy | $345.00 | $345.00 |
| Terry Tillman | Truist Securities | Raises | Buy | $315.00 | $300.00 |
| Rishi Jaluria | RBC Capital | Maintains | Outperform | $300.00 | $300.00 |
| Yun Kim | Loop Capital | Maintains | Hold | $270.00 | $270.00 |
| Brad Sills | B of A Securities | Maintains | Buy | $325.00 | $325.00 |
| Scott Berg | Needham | Maintains | Buy | $345.00 | $345.00 |
| Ambrish Shah | Phillip Securities | Announces | Accumulate | $305.00 | - |
| Terry Tillman | Truist Securities | Maintains | Buy | $300.00 | $300.00 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Salesforce. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Salesforce compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Salesforce's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Salesforce's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Salesforce analyst ratings.
About Salesforce
Salesforce provides enterprise cloud computing solutions. The company offers customer relationship management technology that brings companies and customers together. Its Customer 360 platform helps the group to deliver a single source of truth, connecting customer data across systems, apps, and devices to help companies sell, service, market, and conduct commerce. It also offers Service Cloud for customer support, Marketing Cloud for digital marketing campaigns, Commerce Cloud as an e-commerce engine, the Salesforce Platform, which allows enterprises to build applications, and other solutions, such as MuleSoft for data integration.
Key Indicators: Salesforce's Financial Health
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Revenue Growth: Salesforce displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 8.39%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: Salesforce's net margin excels beyond industry benchmarks, reaching 15.32%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Salesforce's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.44%, the company may face hurdles in generating optimal returns for shareholders.
Return on Assets (ROA): Salesforce's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.52%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.2, Salesforce adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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