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Salesforce stock maintains price target, Outperform rating

May 29, 2024

On Wednesday, Evercore ISI maintained its Outperform rating and $330.00 price target for (NYSE:CRM), anticipating a positive earnings report. The firm forecasts that the company will likely exceed first-quarter expectations modestly, particularly in subscription revenue, Current Remaining Performance Obligations (CRPO), and operating margins.

Salesforce is expected to deliver “beat and bracket” results, a term used when a company surpasses estimates and raises future guidance. The guidance for subscription revenue growth around 10%, adjusted for currency changes, is viewed as attainable, considering the CRPO’s steady performance in recent quarters. Observations from Salesforce’s recent World Tour event also suggest potential modest increases in initial subscription revenue and CRPO forecasts.