Salesforce's Uncertain Long-term Growth Saga: This Analyst Prefers Adobe & Microsoft More
Portfolio Pulse from Nabaparna Bhattacharya
BMO Capital Markets analyst Keith Bachman reiterated an Outperform rating on Salesforce (CRM) but lowered the price target from $262 to $252, citing uncertainty on long-term growth. Despite this, Salesforce's valuation is seen as reasonable against large-cap peers. The analyst prefers Adobe (ADBE) and Microsoft (MSFT), noting Adobe's leadership in customer data platform solutions. Salesforce is expected to benefit from its integrated cloud suites and has potential for durable margin expansion. CRM shares dropped slightly by 0.41% to $224.21.
November 21, 2023 | 8:14 pm
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NEUTRAL IMPACT
Salesforce's price target was lowered to $252 by BMO Capital Markets due to uncertainties in long-term growth, but the Outperform rating was maintained. The company's valuation is considered reasonable, and it has potential for margin expansion.
The reduction in price target suggests some caution, which could temper investor enthusiasm in the short term. However, maintaining the Outperform rating and recognizing the company's reasonable valuation and margin expansion potential could mitigate negative impact.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
POSITIVE IMPACT
Adobe is preferred over Salesforce by BMO Capital Markets due to its leadership in customer data platform solutions. No specific price target or rating was provided in the article.
The positive mention as a preferred company over Salesforce due to its leadership in CDP solutions could be seen as a bullish signal for Adobe in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Microsoft is also preferred by BMO Capital Markets over Salesforce, but the article does not provide specific details on the rating or price target for Microsoft.
Being mentioned as a preferred company alongside Adobe suggests a positive outlook for Microsoft, which could have a favorable short term impact on its stock.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70