Salesforce Demand, Backlog Strength Seen Supporting Growth, Wedbush Says

MT Newswires Live05-22 23:21

Salesforce (CRM) may use its fiscal Q1 results to highlight strengthening AI demand, steady backlog conversion, stable guidance, and support from its share-buyback program, Wedbush Securities said Friday in a report.

The earnings release due Wednesday is a key moment as investors remain concerned that AI may pressure parts of the software sector, the report said. Wedbush argued that Salesforce's Agentforce, Data 360, and its integration with Informatica position the company as a long-term AI beneficiary, given its large installed base and entrenched data and workflow tools.

Consensus estimates of $11.05 billion in revenue and $3.13 in earnings per share appear beatable, helped by strong remaining performance obligations, the report said.

Salesforce's $25 billion accelerated stock buyback should reduce share count and support earnings per share through fiscal 2027, the report said.

Wedbush maintained its outperform rating on Salesforce stock and its $325 price target, saying the market continues to undervalue Salesforce's core business and AI opportunity.

Price: 177.99, Change: +1.68, Percent Change: +0.95

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment