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Salesforce Inc (NYSE: ) has about doubled in 2023 but a Morgan Stanley analyst is convinced that it’s not out of juice just yet.
Salesforce stock should be worth $350
Keith Weiss upgraded the software firm this morning to “overweight” and raised his price target to $350 which suggests a 35% upside on its previous close.The analyst is bullish on Salesforce stock because it currently trades at a discount versus other large-cap software names on a growth-adjusted earnings basis. His research note also reads:
Low investor expectations vs potential top-line upside drivers in price increases, product bundling and Data Cloud adoption frame an attractive risk/reward for CRM.
Last month, Salesforce Inc it now expects its operating cash flow to grow by 33% in fiscal 2024. Its previous guidance was for a 30% growth.
Salesforce stock is an AI beneficiary
Keith Weiss agreed in his research note today that the related benefit will likely take another twelve months at least to realise.
Einstein is a @Salesforce staple, embedding #AI into CRM. So, what exactly is Copilot?
Get the inside scoop on #Salesforce‘s conversational AI assistant including more details on its capabilities, security, and workflow details in under a minute: https://t.co/3kNEsJ3NSM pic.twitter.com/uQwFaMi9lU
— Salesforce News (@SalesforceNews) December 20, 2023
Still, the analyst is constructive on Salesforce stock because he expects Data Cloud to be a meaningful growth catalyst in the coming year.Note that $CRM has cut a whopping over the past twelve months – which makes up for another good reason to remain long this stock, as per the famed investor Jim Cramer. In January of 2023, activist investor Elliott Management also revealed a multi-billion-dollar .More By This Author:
