not vested
Salesforce Inc - Stock Analyst Research
Target Price* 242.00
Recommendation ACCUMULATE
Salesforce Inc - Profit outlook raised2Q24 revenue was in line with our expectations, while earnings exceeded expectations.
1H24 revenue/PATMI was at 49%/55% of our FY24e forecasts.
In 2Q24, PATMI spiked by 19-fold YoY driven by higher operating leverage.
For FY24e, Salesforce boosted its revenue outlook to US$34.75bn from the prev. US$34.6bn as it benefits from AI-related demand and a recent price hike of 9% across its cloud products.
The company also raised its GAAP EPS outlook to US$3.51 from US$2.68 led by cost containment efforts.
We maintain ACCUMULATE with a raised DCF target price of US$242.00 (prev. US$226.00), with a WACC of 7% and terminal growth of 4%.
We increase our FY24e revenue/PATMI estimates by 1%/30% to reflect benefits from the price hike and lower expenses.
We believe Salesforce is well-positioned to benefit from cloud-based digital transformation trends as companies look to form a more holistic view of their customer data to provide better customer experiences.
Source: Phillips
https://www.poems.com.sg/stock-research/CRM/
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