salesforce.com (CRM) PT Raised to $360 at Goldman Sachs

Goldman Sachs analyst Kash Rangan raised the price target on salesforce.com (NYSE: CRM) to $360.00 (from $325.00) while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating and raise our PT to $360 (vs $325 prior) following Agentforce World Tour, where conversations with partners and customers left us with greater conviction in Salesforce’s AI strategy execution. While cost savings have been a core driver in Gen-AI tools' adoption, our conversations suggest shifting focus toward revenue-generating use-cases since Agentforce’s release at Dreamforce. Increased traction and understanding of revenue opportunities from Agentforce powered by Data Cloud (1.9T weekly AI transactions via Model Builder and 83.2B weekly workflows via Flow Builder) can reinforce customers’ demand for enhanced data strategy and validation for Data Cloud’s value prop, propelling durable growth and incremental demand for both. Additionally, several key tailwinds can add 2-3 points of subscription revenue growth exiting 2H:CY25: 1) macro improvement, 2) IT budget unlock as AI spend moves into the application layer (Gen-AI VIII), 3) Gen-AI strategy execution, 4) Data Cloud's added contribution as it approaches $1bn at an accelerated growth rate, and 5) cyclical improvements in Marketing and Commerce Cloud (which can reaccelerate to ~12% yoy growth). These can support top-line growth more in-line with peers' average of 13% (CY25), in-turn driving multiple appreciation from 6.6x EV/Sales (CY26) toward comps' average 8.2x. Heading into F3Q25, we believe investors are likely looking for upside to cRPO and revenue expectations (GSe: 9%/8% for F3Q25), potential viability into FY26 (and extent of Data Cloud/Agentforce's contribution to this growth), and clarity around Salesforce's go-forward AI strategy after a change in management and increased hiring intentions. This makes our CY26 expectation of $15-16 FCF/Share look achievable (first laid out in February 2023), where a company such as Salesforce whose durable growth with AI optionality could garner a 25-30x EV/FCF in a stable cycle."

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