Evercore ISI Reiterates Outperform Rating on salesforce.com (CRM)

Evercore ISI analyst Kirk Materne reiterated an Outperform rating and $300.00 price target on salesforce.com (NYSE: CRM).

The analyst comments "Bit of a mixed bag – expect solid F2Q results but a potential cut to F2H revenue/CRPO as macro remains uneven. At ~19x EV/FCF, the buyside is already baking in revenue growth closer to ~8-9% for CY25 so while we expect CRM to meet/exceed F2Q subs revenue/CRPO guidance, we believe that seeing a modest cut to 2H guidance would make some sense, especially when offset by a small raise to the FY op. margin guidance. CRM will also be facing a tough CRPO compare in F3Q so seeing CRPO growth in the 8-9% range should not come as a surprise. Bottom line: We believe business levels are decent and good enough to deliver solid F2Q results, but lowering the bar for 2H combined with a slight raise to the FY op. margin guidance would likely drive more buyside interest in shares coming away from the print. Essentially, we see a ‘small beat and keep’ that implies slightly lower revenue growth in 2H being a favorable outcome when thinking through the set up for shares into fall as investors are wary to buy into names where top line estimates are not de-risked."

For an analyst ratings summary and ratings history on salesforce.com click here. For more ratings news on salesforce.com click here.

Shares of salesforce.com closed at $264.00 yesterday.

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