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Investing.com - Cantor Fitzgerald has reiterated an Overweight rating and $325.00 price target on salesforce.com (NYSE:CRM) as the company clarifies its pricing strategy. This target represents significant upside from the current price of $247.46, aligning with InvestingPro data showing the stock is trading below its Fair Value.
The research firm noted that management has begun to formalize and mature its pricing approach, which should address customer concerns about opacity that had emerged in customer and partner conversations. This strategic shift comes as Salesforce maintains impressive gross profit margins of 77.73% on its $40.32 billion in revenue.
Salesforce has structured its pricing strategy into three categories: seat-based SKUs (Agentforce 1 Editions), pay-as-you-go and pre-commit options, and newer offerings including Flex Credits and Agentic Enterprise License Agreements (AELA).
These pricing tiers align with the typical customer lifecycle for Agentforce, starting with pay-as-you-go pricing before progressing to pre-commitments, then Flex Credits that allow flexibility between seat licenses and AI usage, and finally AELAs for full production deployment.
Cantor Fitzgerald highlighted that approximately 16 AELAs are currently in production with an average incremental Annual Recurring Revenue exceeding $1 million each, with 10-20 new opportunities being added to the pipeline weekly. InvestingPro data reveals Salesforce has a perfect Piotroski Score of 9, indicating strong financial health as it expands these high-value enterprise agreements. For deeper insights into CRM’s valuation and 8+ additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Salesforce reported third-quarter revenue growth of 8%, meeting expectations, while its current remaining performance obligation (cRPO) exceeded forecasts by approximately 2%. The company also provided fourth-quarter organic revenue and cRPO guidance that aligned with market expectations. UBS reiterated its Neutral rating on Salesforce with a $260 price target, describing the earnings report as "mixed." Meanwhile, TD Cowen maintained its Buy rating, highlighting momentum in Salesforce’s AgentForce product. Piper Sandler also kept its Overweight rating, noting significant growth in the company’s artificial intelligence offerings, with AgentForce annual recurring revenue reaching $540 million. RBC Capital reiterated a Sector Perform rating, acknowledging Salesforce’s strong performance in profitability metrics. DA Davidson raised its price target to $235 from $225, citing stronger-than-expected bottom-line performance despite lower-than-expected revenue. These developments reflect varied analyst perspectives on Salesforce’s recent performance and future prospects.
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