By Sam Boughedda
Salesforce (NYSE:) shares were named a Raymond James analyst’s Current Favorite, with the firm writing that the software company “could be at an inflection point,” in a note Monday.
In the note, Raymond James said it is surprised by recent underperformance in CRM stock, “particularly given its ability to hold margin guidance steady (despite a lower top-line outlook) and a ~$10 billion share repurchase authorization.”
The comments come ahead of CRM’s analyst day and user conference this week “with messaging likely confirming a healthy durable growth profile and getting more comfort on margins/dilution,” the event could offer a positive catalyst for the stock, the analyst said.
The analyst, who has a Strong Buy rating on CRM, declared: “We like that risk/reward, and we’re making shares our new Analyst Current Favorite.”
Elsewhere, a Jefferies analyst, who has a Buy rating and $250 price target on CRM shares, told investors in a note that they expect CRM to provide innovation updates (Slack integration), update F26 top line goals (Street at $48B vs. prior goal of $50B), and give higher margins at its investor day.
“While we do not expect a F24 top line guide, we do expect comments on margins (Street at 21.6% vs. F23E at 20.4%). We also expect a F26 margin target (Street at 25%) and a share buyback timeline ($10B announced). CRM trades close to trough levels at 4x’ 23E rev,” the analyst stated.