Salesforce (CRM) Added to Analyst Current Favorite at Raymond James

September 19, 2022 10:57 AM EDT
Get Alerts CRM Hot Sheet
Price: $205.94 -3.25%

Rating Summary:
    45 Buy, 17 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 8 | New: 16
Join SI Premium – FREE

News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.

Salesforce (NYSE: CRM) shares were named Raymond James' Analyst Brian Peterson'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, said Peterson.

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, Jefferies analyst Brent Thill, 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," Thill stated.

By Sam Boughedda

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Hot List

Related Entities

Raymond James, Jefferies & Co