Salesforce Analysts Raise Forecasts After Q3 Earnings: ‘Leading The Way In Agentic AI Cycle’
Salesforce Inc (NYSE:CRM) shares were climbing in on Wednesday, despite the company reporting an earnings miss in the third quarter.
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
Stifel On Salesforce
Analyst J. Parker Lane reiterated a Buy rating while raising the price target from $390 to $425.
Salesforce reported current RPOs (remaining performance obligations) of $26.4 billion, representing 10% year-on-year growth and beating consensus estimate of $26.1 billion, Lane said in a note. The company’s cRPO growth remains in double-digits for the second consecutive quarter, despite Agentforce and Data Cloud not contributing meaningfully as of now, he added.
“With the story now centered around the Agentforce/AI opportunity, we believe management’s disclosure of 200 Agentforce deals (GA late in the quarter) and a significant pipeline served as solid initial proof-points in the company’s ability to capture AI workloads and its positioning relative to enterprise competitors,” the analyst wrote.
Salesforce is “the best way to play AI within our coverage universe,” he further stated.
RBC Capital Markets On Salesforce
Analyst Rishi Jaluria maintained an Outperform rating while lifting the price target from $300 to $420.
Salesforce’s third-quarter results were “solid,” sending shares higher by 11% in the after-hours session on Tuesday, Jaluria said. “Subscription revenue growth stabilized, and cRPO growth was solid, remaining in double-digits,” he added.
The company raised the midpoint of its fourth-quarter guidance for total revenue by around $50 million, while stating that its acquisition of Own closed at the end of the quarter, the analyst stated. “While Agentforce updates were encouraging, we question if expectations are getting ahead of NTM (next twelve months) reality,” he further wrote.
JPMorgan On Salesforce
Analyst Mark Murphy reaffirmed an Overweight rating while raising the price target from $340 to $380.
Salesforce’s earnings slightly missed expectations due to strategic investments, Murphy said. Total revenue came in at $9,444 million, beating Street estimates of $9,351 million, he added.
Although the company’s fourth-quarter revenue guidance came in below consensus, this was “overshadowed by successful attainment or slight upside across other metrics” in the third …
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