Stifel Sticks by Salesforce 'Buy' Rating Amid Revenue Growth

Stifel, a financial firm, has reaffirmed its 'Buy' rating on Salesforce.com shares. The company believes that investors are increasingly recognizing the revenue acceleration story of Salesforce, which has led to a significant re-rating throughout the summer.

The second fiscal quarter results showed that NNAOV growth reached its highest point in four years, supporting subscription and support acceleration in the second half of the fiscal year. Salesforce's revenue growth over the last twelve months was 11.23%, with an impressive gross profit margin of 77.28%. The stock has gained 25.81% over the past six months.

Stifel views expectations heading into Dreamforce and Analyst Day as elevated, with investors underwriting double-digit fiscal 2028 growth and a Rule of 50 path by fiscal 2030. The firm expects Salesforce to reiterate its fiscal 2030 target of $63 billion in revenue, up from current trailing twelve-month revenue of $43.94 billion.

Stifel also sees opportunities for pricing and packaging updates that monetize Headless 360 as a significant near-term opportunity, alongside continued adoption and consumption of Agentforce and Data360. The firm anticipates these will be key focus areas of the conference and investor session.