On Thursday, Wedbush Securities maintained a positive outlook on Salesforce.com shares (NYSE:CRM), reiterating an Outperform rating and a price target of $425.00. Trading at $344.43, the stock remains slightly undervalued according to InvestingPro Fair Value estimates. The firm's analysts emphasized Salesforce's strategic positioning as the artificial intelligence (AI) revolution progresses, particularly in the software sector as the world approaches 2025.
Salesforce, with its impressive 76.94% gross profit margins and perfect Piotroski Score of 9, is seen as well-equipped to secure a significant portion of the market growth driven by AI monetization, which is expected to boost the company's growth over the next 12 to 18 months.
Analysts project a $7 trillion digital labor market opportunity that Salesforce could tap into. (InvestingPro subscribers have access to 15+ additional key metrics and insights about Salesforce's financial health.) The company's initiative, Agentforce 2.0, aims to accelerate the development of next-generation AI agents. These agents are designed to perform complex tasks for humans, incorporating enhanced trust layers for agents and signaling the advent of a new digital labor era.
The analysts believe that Salesforce stands to be a clear secondary beneficiary of the AI revolution. This advantage could potentially add approximately $80 per share to Salesforce's valuation as the company monetizes these advancements. With Marc Benioff at the helm, Salesforce is expected to lead the way in this new phase of AI-driven growth.
The focus on leveraging customer data to reduce costs and increase automation for businesses through advanced AI is a strategic move by Salesforce. The company is positioning itself at the forefront of digital transformation, a critical factor as industries worldwide continue to integrate AI technologies to improve efficiency and innovation.
Salesforce's commitment to developing AI capabilities that foster a new generation of digital labor aligns with the broader industry trend toward automation and intelligent systems. The company's targeted growth and market expansion strategies underscore its potential to capitalize on the burgeoning digital labor market.
In other recent news, Salesforce.com has been the subject of several analyst reviews following significant product developments and events. Truist Securities maintained a Buy rating and a $400.00 price target for Salesforce, following their attendance at the CRM's Agentforce World Tour event. The firm highlighted the positive reception of Salesforce's offerings and the potential for new products to catalyze an uptick in revenue growth.
Meanwhile, Stifel maintained its Buy rating for Salesforce, aligning with the broader analyst consensus. The firm noted the staggered release schedule of Agentforce 2.0, which will be fully available in February 2025. The product is expected to enhance Salesforce's core function of supporting its customer base with revenue management and process optimization.
Mizuho (NYSE:MFG) Securities sustained its optimistic outlook on Salesforce, maintaining an Outperform rating and a $425.00 price target on the stock. The firm emphasized Salesforce's strategic position and the potential impact of Agentforce 2.0 on the company's future growth.
Goldman Sachs reaffirmed its Buy rating on Salesforce.com, emphasizing the company's AI execution and potential growth in the digital labor market. The endorsement follows the Agentforce 2.0 event, which showcased Salesforce's continued innovation and technical leadership in the customer relationship management space.
Lastly, BMO Capital Markets reiterated its Outperform rating on shares of Salesforce, highlighting the company's growth prospects in the context of broader IT budget forecasts and the potential of its Agentforce platform.
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