Stifel reiterates Salesforce stock Buy rating on revenue growth

Stifel has reaffirmed its Buy rating and $275 price target on Salesforce.com (NYSE:CRM) shares, highlighting the company's revenue acceleration throughout the summer. Salesforce experienced a significant re-rating during the summer period as investors recognized its remarkable revenue growth. During the second fiscal quarter, the company reported a Net New Annualized Outstanding Users (NNAOV) growth rate that reached its highest point in four years, driving subscription and support acceleration towards the latter half of the fiscal year.

Salesforce demonstrated an 11.23% revenue growth over the past twelve months, with a gross profit margin of 77.28%. This growth momentum is evident as the stock has surged by 25.81% over the past six months.

Stifel anticipates investors to set high expectations before the Dreamforce event and Analyst Day, believing that expectations are now underpinned by double-digit fiscal 2028 growth and a projected Rule of 50 by fiscal 2030. The firm forecasts Salesforce to achieve its $63 billion revenue target for fiscal 2030, up from the current trailing twelve-month revenue of $43.94 billion.

Analysts are eager to learn more about fiscal 2028, particularly a directional guide of at least 10% growth, to validate the bullish near-term outlook.

Investors seem to be seeking further clarification on the fiscal 2028 guidance, including a directional target at or above 10% growth, to solidify their confidence in the stock's near-term performance. Salesforce is poised to leverage key opportunities during the upcoming conference, such as pricing and packaging updates that monetize Headless 360, as well as the continued adoption and utilization of Agentforce and Data360. These developments are expected to be focal points of the event and investor discussions.

In related news, Salesforce has been receiving increased attention from analysts. Cantor Fitzgerald raised its price target to $300, citing the company's AI momentum and strategic initiatives shared during a recent webinar. TD Cowen also increased its price target to $300, emphasizing Salesforce's partnership with Anthropic, known as Claudeforce.

JMP Securities echoed this sentiment, reiterating a Market Outperform rating with a $315 price target after highlighting AI-driven product adoption and momentum during a company webinar. UBS maintained its Neutral rating with a $240 price target, focusing on Salesforce's upcoming Dreamforce conference and the potential impact of the Claudeforce partnership.

RBC Capital kept its Sector Perform rating and $250 price target, expecting Dreamforce to showcase enhanced Agentforce capabilities. These updates underscore the market's focus on Salesforce's AI strategies and partnerships as critical factors shaping the company's future trajectory. The article was generated with the assistance of AI and reviewed by an editor.