Salesforce, the leading cloud-based software company, is poised for further growth according to Morgan Stanley analyst Keith Weiss. In a recent research note, Weiss upgraded Salesforce’s shares from Equal Weight to Overweight and raised his price target to $350, representing a potential 24% increase from the previous closing price of $260.25.
Weiss believes that investors have not fully considered certain factors that could propel Salesforce’s stock in the coming year. Specifically, he highlights the potential for price increases, product bundling, and increased adoption of their Data Cloud as drivers of top-line growth. This combination of factors presents an attractive risk/reward opportunity for investors.
The optimistic outlook provided by Weiss contrasts with the recent downgrade of Salesforce by Wells Fargo analyst Michael Turrin. Turrin reduced the stock’s rating from Overweight to Equal Weight but maintained the target price of $280. Turrin suggests that Salesforce has already captured much of the value from its margin expansion story, tempering expectations for further gains.
Weiss counters this view by projecting accelerated revenue growth for Salesforce through fiscal 2025. With the stock price having nearly doubled this year alone, Weiss believes that there are still untapped avenues for top-line growth that investors have underestimated. As a result, he expects the stock to outperform its current valuation.
Investors seem to have responded positively to Weiss’s analysis, as Salesforce’s shares rose by 2% to $265.38 following the release of the research note. While challenges lie ahead, Weiss’s optimistic outlook reinforces confidence in Salesforce’s ability to continue its upward trajectory.
