Needham Stands Alone in Salesforce Bull Case with $400 Price Target
Salesforce (NYSE:CRM) has continued to underperform over the past year, dropping by nearly 12% in value. Despite this decline, one Wall Street firm, Needham & Company, remains optimistic about the company's future prospects.
The firm's analyst, Scott Berg, has stuck with his $400 price target for Salesforce, which implies a potential upside of over 71% from current levels. This is significantly higher than the consensus target of $281.89, which suggests an implied upside of just 20.8%.
Berg's confidence in Salesforce stems from three key factors: the growing adoption of the company's Agentforce AI product, the consolidation of data spend through its unified Data Cloud platform, and management's ambitious revenue targets. In fact, Salesforce has already seen significant growth in its Agentforce ARR, with a 240% year-over-year increase.
The bear case for Salesforce suggests that Agentforce is simply an interesting product wrapped around a decelerating franchise. However, Needham & Company believes that Agentforce can help push total growth back towards the mid-teens by FY28.