Salesforce Shares Soar to Six-Month High After 'Narrative-Changing' Q2 Earnings

Salesforce shares surged to a six-month high on Thursday after the company's Q2 earnings report, which analysts called 'narrative-changing'. The stock is on track for its biggest single-day gain since July 2020, with over 20% increase in morning trade.

Wall Street analysts responded to the report by raising their price targets. Raymond James analyst Brian Peterson set a new target of $310, up from $290, while Truist and BTIG also see CRM shares climbing to at least $300. Guggenheim analyst John DiFucci said the results went a long way toward 'dispelling the SaaSpocalypse', raising his firm's price target on Salesforce to $270 from $228.

Not all analysts were as bullish, however. Morgan Stanley's Adam Wood called Q2 'a step in the right direction' but maintained an 'Equal Weight' rating, citing concerns about whether Agentforce can sustain stronger growth. Wells Fargo also stated that Salesforce's organic exit growth remains below the level needed to reach its longer-term targets.