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KeyBanc stock maintains Sector Weight on Salesforce amid growth

EditorAhmed Abdulazez Abdulkadir
Published 12/04/2024, 09:03 AM
© Reuters
CRM
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The company's momentum is further underscored by the rapid development of Agentforce 2.0, which is set to launch just six weeks after the original version, indicating significant potential for the future.

However, Salesforce's outgoing CFO, Amy Weaver, has noted that despite the early success of Agentforce, it is still too early for the product to materially contribute to the company's financials.The analyst's commentary suggests a cautious optimism for Salesforce, acknowledging the company's current strengths and potential for growth while also noting areas that warrant attention.

With an "GREAT" financial health score from InvestingPro and revenue growth of 10.26%, Salesforce's strategy and upcoming product developments seem poised to continue driving interest from customers, partners, and investors alike. For a deeper understanding of Salesforce's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The company's momentum is further underscored by the rapid development of Agentforce 2.0, which is set to launch just six weeks after the original version, indicating significant potential for the future. However, Salesforce's outgoing CFO, Amy Weaver, has noted that despite the early success of Agentforce, it is still too early for the product to materially contribute to the company's financials.The analyst's commentary suggests a cautious optimism for Salesforce, acknowledging the company's current strengths and potential for growth while also noting areas that warrant attention.

With an "GREAT" financial health score from InvestingPro and revenue growth of 10.26%, Salesforce's strategy and upcoming product developments seem poised to continue driving interest from customers, partners, and investors alike. For a deeper understanding of Salesforce's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The company's momentum is further underscored by the rapid development of Agentforce 2.0, which is set to launch just six weeks after the original version, indicating significant potential for the future. However, Salesforce's outgoing CFO, Amy Weaver, has noted that despite the early success of Agentforce, it is still too early for the product to materially contribute to the company's financials.

The analyst's commentary suggests a cautious optimism for Salesforce, acknowledging the company's current strengths and potential for growth while also noting areas that warrant attention. Salesforce's strategy and upcoming product developments seem poised to continue driving interest from customers, partners, and investors alike.

In other recent news, Salesforce.com (NYSE:CRM) has been the subject of several price target upgrades following strong earnings and revenue results. Analysts from Scotiabank (TSX:BNS), Truist Securities, JPMorgan, Mizuho (NYSE:MFG) Securities, and Oppenheimer have all raised their price targets, citing the company's robust financial performance and promising future prospects. Notably, Scotiabank increased the target to $440, while Truist Securities raised it to $400 and JPMorgan to $380. Mizuho Securities lifted the target to $425, and Oppenheimer revised it upwards to $415.

These upgrades follow Salesforce's reported growth in current remaining performance obligations (cRPO), indicating future revenue under contract, and a robust forecast for the fourth fiscal quarter (F4Q). The company also reported a 20% GAAP operating margin and provided guidance for a non-GAAP operating margin of approximately 32.9% for F4Q.

In addition to the financial performance, Salesforce's new product, Agentforce, has seen substantial upsell activities among existing Service Cloud customers. The company also made slight upward revisions to its fiscal year 2025 estimates, increasing its revenue, operating margin, and free cash flow margin guidance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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