Anticipated Perspectives on Salesforce Stock Prior to the Announcement of Earnings
Salesforce, the cloud software company, is gearing up to report its first-quarter earnings for fiscal 2025 after market close on Wednesday. The majority of analysts tracked by Visible Alpha maintain a bullish outlook on the company's stock, with 18 out of 23 analysts recommending a "buy" or its equivalent. Analysts' consensus price target of about $364 implies a potential increase of 33% from Friday's closing price, as the shares have declined by around 18% so far in 2025.
According to the consensus rating reported by 43 research firms, Salesforce has a "Moderate Buy" rating, with 31 analysts suggesting a "buy" or a "strong buy," six maintaining a "hold," and only one advising a "sell." A significant number of analysts, such as Wedbush's Daniel Ives, hold a notably optimistic view, with an "Outperform" rating and a raised price target of $425. Ives believes Salesforce's strategic moves, particularly the Informatica acquisition, will boost the company's AI capabilities and spark stronger growth and cross-selling opportunities.
The revised earnings report is expected to show a 7% revenue growth year-over-year, reaching $9.75 billion, and adjusted earnings per share of $2.55, up from $2.44 last year. These figures indicate an encouraging financial performance for the CRM giant. Oppenheimer analysts see "strong momentum" in Salesforce's AI offering, Agentforce, while Deutsche Bank and Jefferies maintain their bullish targets, with prices at $400 and $375, respectively.
In the report, the options market activity suggests a positive outlook for Salesforce shares following the earnings, although recent sentiment has dipped somewhat according to one report. The strong bullish outlook, coupled with analysts' optimism and favorable market positioning, sets a constructive tone for Salesforce's upcoming earnings release.
Salesforce's AI capabilities are expected to increase due to strategic moves such as the Informatica acquisition, as suggested by analysts like Wedbush's Daniel Ives. Ives has given Salesforce an "Outperform" rating and a price target of $425, indicating a potential investment opportunity in the company's token. The options market activity indicates a positive outlook for Salesforce shares following the earnings, reflecting a consensus of optimism among analysts. The company's technology and financial performance, with expected revenue growth and earnings per share, are anticipated to be strong, as suggested by reports like Oppenheimer's "strong momentum" in Salesforce's AI offering, Agentforce.
