Piper Sandler on Tuesday upgraded Salesforce stock to overweight on new pricing, product bundling potential and the software maker's ability to grow free cash flow.
Piper Sandler analyst Brent Bracelin upgraded Salesforce stock to overweight from neutral. Bracelin increased his price target to 325 from 268.
"Margin leverage and buybacks could sustain low double-digit free cash flow growth per share for the next three to five years," Bracelin said in a report.
Salesforce Stock Rises Early
By 2028, he estimated Salesforce's free cash flow per share could double to $20 from $9.65 in 2024 "even if top-line growth remains at subdued levels of 8% to 9%."
On the stock market today, Salesforce stock rose more than 2% to 269.70. CRM stock trades near both its 50-day and 200-day moving averages.
The enterprise software maker hosted its Dreamforce customer conference last week. At the event, management touted new artificial intelligence agents.
"Discussions last week with the leadership team, partners, and customers give us confidence that new pricing and packaging could broaden multi-cloud adoption while the promise of Agentforce paired with Data Cloud could help stabilize demand," Bracelin said.
In 2024, Salesforce stock is up 2% with Tuesday's gain. Further, Salesforce is among AI stocks to watch.
According to IBD Stock Checkup, CRM stock currently has a Composite Rating of 83 out of a best possible 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. Also, the best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
