Salesforce Inc (NYSE:CRM) shares rallied in early trading on Thursday, after the company set a revenue target of $60 billion for fiscal 2030.
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Here are some key analyst takeaways:
- BofA Securities analyst Brad Sills maintained a Buy rating and price target of $235.
- Piper Sandler analyst Hannah Rudoff reiterated an Overweight rating and price target of $315.
- Needham analyst Scott Berg reaffirmed a Buy rating and price target of $400.
- JPMorgan analyst Mark Murphy maintained an Overweight rating and price target of $365.
- Goldman Sachs analyst Kash Rangan reiterated a Buy rating and price target of $385.
BofA Securities: Salesforce revenue target implies topline CAGR (compounded annual growth rate) of more than 10% through fiscal 2030, Sills said in a note. While this was broadly in line with expectations, it implied margin expansion was significantly higher than expected, he added.
The rule of 50 target implies a margin of roughly 40%, suggesting annual expansion of 150 basis points (bps) through fiscal 2030, the analyst stated. "The margin target underscores commitment to balanced growth and productivity gains," he further wrote.
Piper Sandler: Salesforce's analyst day highlighted a strong innovation pipeline and visibility into bookings and revenue growth, Rudoff said. The reacceleration in revenue growth is driven by both the company's core business and Agentforce, he added.
The transforming from being a fundamental Salesforce customer to an Agentic Enterprise unlocks ARR (annual recurring revenue) of 3x to 4x, the analyst stated. He wrote, however, that the "timing around Agentforce adoption at scale remains unclear."
Needham: Salesforce announced its target to accelerate growth to reach $60 billion in revenue and 40% in non-GAAP operating margins by fiscal 2030, Berg said. He added both were much better than expected.
The biggest takeaway was CRO Miguel Milano’s comment that the company's four pure-play LLM vendors had tripled their investment in its applications over the last 12 months, the analyst stated. "If accurate, we could not have come up with a better example ourselves as to why current market sentiment on Gen AI destroying Enterprise Software is wrong," he further wrote.
Check out other analyst stock ratings.
JPMorgan: The bears believed Salesforce's revenue growth would decelerate toward GDP-level growth, Murphy said. He added, however, that the newly issued longer-term goal presents "a material setback" to these expectations.
The target of a rule-of-50 by fiscal 2030 implies some level of margin expansion from the current projections for fiscal 2026, the analyst stated. Salesforce indicated that "NNAOV (net new annual order value) growth should be crossing over and exceeding Total AOV growth in FY26 and FY27," he further wrote.
Goldman Sachs: Salesforce seems poised to achieve sustainable double-digit revenue growth, driven by strength in its product portfolio, distribution scale and AI execution, Rangan said. While achieving this, the company would demonstrate that its operating model can lead to margin expansion while preserving innovation, he added.
Salesforce's shares have declined by 29% year to date, significantly underperforming the Nasdaq's 18% gain, the analyst stated. "We continue to believe that AI can actually be a force multiplier for Salesforce as it becomes the new conversational interface for its product portfolio, thereby driving sustainable and defensible growth for years to come," he further wrote.
CRM Price Action: Shares of Salesforce had risen by 4.62% to $247.52 at the time of publication on Thursday.
Read More:
• Salesforce Gains On Strong AI Momentum, Agentforce Expansion & Expanded Google Partnership
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