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Salesforce (CRM.US) earnings on tap; Wedbush reiterates bullish view

Market IntelMonday, Dec 2, 2024 8:50 am ET

1min read

Zhitong Finance learned that Salesforce (CRM.US) will announce its third-quarter earnings before the US stock market opens on Wednesday. Wedbush expects the company to report "strong" results and guidance. Wedbush analyst Dan Ives maintained his "Outperform" rating and $375 target price on Salesforce and added that the stock is one of the "most favored tech stocks" to enter 2025. Analysts generally expect Salesforce to generate revenue of $9.35 billion and earnings per share of $2.45.

Ives wrote in a note to clients: "Our recent field checks show that more and more customers are seeing increased use cases across Salesforce's entire product suite, while entering the next wave of growth and leveraging the transformational demand for AI solutions to automate and increase efficiency across organizations. We still believe that Salesforce's risk/reward is very compelling at current levels, while the installed base opportunity remains underestimated by Wall Street."

In September this year, Salesforce launched Agentforce, which further convinced the company is monetizing AI. Ives said based on estimates and field checks, the company's annual revenue could increase by $4 billion by 2025.

Ives added: "While this won't happen overnight, Salesforce's AI monetization story will be a key growth catalyst for the tech giants in the coming years, Agentforce represents the latest progress in Salesforce's AI, with AI agents built with the latest AI functions to train models that handle everyday use cases, so humans can focus on more complex situations with higher resolution on sales and service issues."

Therefore, as Salesforce's monetization efforts gradually take shape over the next 12 to 18 months, the value of its AI plans per share may be about $40.

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