Salesforce (NYSE:CRM) hosted its World Tour event in New York City this week with the keynotes addressing the company's expanded capabilities of Einstein and Data Cloud, including vector databases and RAG search, Einstein Copilot, and enhanced integrations with Apple.
Reacting to the event, analysts at Jefferies, who have a Buy rating and a $300 per share price target on the stock, said they came away incrementally positive on management's pricing and packaging announcements in order to encourage Data Cloud adoption.
"First, mgmt. will offer Data Cloud and Tableau for free to all customers (with limitations)," the analysts wrote. "Second, mgmt. announced Unlimited+ SKUs for Sales and Service Clouds, which include Slack, Gen AI capabilities, and Data Cloud credits. We believe these incremental announcements are intended to increase Data Cloud adoption."
Despite the more than 90% move up so far in 2023, Jefferies sees CRM as a "$10+ earnings story" in the 2025 calendar year.
Elsewhere, analysts at Citi, who have a Neutral rating and $265 price target on the stock, said that with vector databases and RAG search towards the peak of the hype cycle around GenAI technology at the moment, they "see the new product announcements from CRM as more of a PR/mindshare goal, with the adoption gated by the maturity/scale of customers' Data Cloud environments, which are still early."