Salesforce Leverages AI and Data Cloud for Future Expansion, Eyes Significant Margin Gains and Sustained Growth, Analyst Says
Portfolio Pulse from Anusuya Lahiri
RBC Capital analyst Rishi Jaluria reiterated Salesforce Inc (CRM) with an Outperform rating and raised the price target from $325 to $350, citing enthusiasm for generative AI, significant growth in Data Cloud ARR, and impressive margin expansion. Salesforce's strategic focus on AI and Data Cloud is expected to drive long-term growth and margin gains, despite no immediate revenue from GenAI. The company's stock has seen a 55% increase over the last 12 months, and exposure to CRM can also be gained through FEPI and MRAD ETFs.
April 12, 2024 | 5:42 pm
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POSITIVE IMPACT
Salesforce's focus on AI and Data Cloud, along with improved margins and operational discipline, underpins RBC Capital's optimistic outlook and price target increase from $325 to $350.
The analyst's raised price target and positive outlook on Salesforce's strategic initiatives in AI and Data Cloud, coupled with margin expansion, suggest a bullish view on CRM's stock in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Salesforce through REX FANG & Innovation Equity Premium Income ETF (FEPI), which may benefit from CRM's positive momentum.
Given Salesforce's positive outlook and its inclusion in FEPI, the ETF could see benefits from CRM's growth and investor interest, potentially impacting its performance positively.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
SmartETFs Advertising & Marketing Technology ETF (MRAD) provides another avenue for investment in Salesforce, potentially benefiting from CRM's growth trajectory.
MRAD's inclusion of Salesforce suggests that the ETF could benefit from the positive developments and investor optimism surrounding CRM, possibly leading to better performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50