- CRM
- TFC
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CRM stock was on track for its biggest one-day gain since July 2020.
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Analysts said stronger bookings and growing Agentforce adoption could help Salesforce return to faster growth.
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Some analysts remain cautious, saying Salesforce still needs to prove that its AI growth can last.
Salesforce (CRM) shares rallied in morning trade on Thursday to hit a six-month high, on track to clock their biggest single-day gains in six years, after what analysts called a “narrative-changing” second quarter.
Wall Street issued a slew of price hikes, with Raymond James analyst Brian Peterson issuing the highest price target of $310, up from $290, with a ‘Strong Buy’ rating. Truist, BTIG and Jefferies also see CRM shares climbing to at least $300.
Guggenheim analyst John DiFucci said the results went a long way toward “dispelling the SaaSpocalypse” that CEO Marc Benioff had been fighting for months. He raised the firm’s price target on Salesforce to $270 from $228 and kept a ‘Buy’ rating on the shares.
Analysts who took a more cautious stance on Salesforce also raised targets, suggesting the debate is no longer whether Salesforce can survive the AI disruption, but whether its emerging AI opportunity can deliver durable organic growth.
CRM stock gained over 20% in morning trade, trading at levels last seen in January, and was among the top trending tickers on Stocktwits at the time of writing.
The shares were also on track to log their biggest single-day jump since July 2020
Wall Street Sees Salesforce Growth Reaccelerating
Canaccord said the organic reacceleration investors have been waiting for is “increasingly moving from thesis to the numbers.” The firm raised its price target to $270 from $225 and maintained a ‘Buy’ rating, pointing to Salesforce’s strongest net new annual order value growth in four years, near-record-low attrition, improving contract duration and 14% constant-currency current Remaining Performance Obligations (cRPO) growth.
Truist also pointed to signs that the pieces needed for sustainable organic growth are coming together. Analyst Terry Tillman raised his price target to $300 from $280 and maintained a ‘Buy’ rating, citing four-year-high net new annual order value growth and continued momentum in Agentforce, whose annualized recurring revenue has reached about $1.5 billion.
BTIG and Jefferies echoed the bullish view, raising their targets to $300. BTIG called the quarter “narrative-changing,” while Jefferies said investor concerns about Salesforce’s expected second-half reacceleration had been “soothed.”
