At Extreme Investor Network, we strive to provide our readers with unique and valuable insights into the world of investing. Today, we are diving into the recent sharp sell-off in Salesforce stock and how analysts on Wall Street are reacting to it.
Despite Salesforce disappointing Wall Street with a significant first-quarter revenue miss, analysts from major firms like Goldman Sachs, Morgan Stanley, and JPMorgan Chase are remaining optimistic about the future of the company. The sell-off was attributed to elongated deal cycles in the first quarter and a softer-than-expected second-quarter outlook.
Morgan Stanley analyst Keith Weiss sees potential tailwinds from a developing artificial intelligence cycle that could benefit Salesforce in the future. He reiterated an overweight rating on the stock and set a price target of $320 per share, implying an 18% upside from the current price.
Goldman Sachs analyst Kash Rangan also maintains a buy rating on Salesforce stock, with a lowered price target of $315 per share. Rangan believes that there are macro and micro reasons for optimism, including easing interest rates and strong growth potential from Gen-AI.
JPMorgan analyst Mark Murphy believes that the sell-off is overdone and investors are overlooking Salesforce’s strong free cash flow generation and unchanged full-year forecast. He reiterated an overweight rating with a $300 per share price target, indicating about 10% upside potential.
On the other hand, Citigroup had a dissenting opinion, with analyst Tyler Radke expressing concern over Salesforce’s quarterly results. Radke maintained a neutral rating on the stock and lowered the price target to $260 per share, suggesting a 4% downside from the current price.
As we navigate through the ups and downs of the market, it’s crucial to consider the insights of various analysts and experts. Stay tuned to Extreme Investor Network for more in-depth analysis and investing tips to help you navigate the world of investing with confidence.