Analyst Endorses Salesforce’s Buy Rating Amid Potential Accretive Acquisition of Informatica – TipRanks Financial Blog

Brent Thill, an analyst from Jefferies, maintained the Buy rating on Salesforce (CRM – Research Report). The associated price target remains the same with $350.00.

Brent Thill has given his Buy rating due to a combination of factors, including the potential for strategic acquisitions that could enhance Salesforce’s (CRM) product offerings. Thill notes that the recent interest in Informatica (INFA) could significantly bolster Salesforce’s data management capabilities. Such an acquisition would align well with Salesforce’s existing MuleSoft platform, potentially unlocking new opportunities in the Data Cloud and AI sectors. This would not only expand the company’s services but also promises to do so with minimal impact on Salesforce’s profit margins, given INFA’s strong margin profile.
Moreover, Thill observes that Informatica’s current valuation could make a prospective acquisition financially feasible for Salesforce. The trading multiple of INFA at 7x next twelve months (NTM) revenue is seen as consistent with valuations in similar data and integration deals. This suggests that an acquisition at this level would be reasonable and in line with market precedents. Thill’s assessment points to a strategic move that could be accretive to Salesforce’s growth trajectory and market position, underpinning his positive Buy rating on the CRM stock.

In another report released on April 12, RBC Capital also maintained a Buy rating on the stock with a $350.00 price target.

Based on the recent corporate insider activity of 412 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRM in relation to earlier this year.

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Salesforce (CRM) Company Description:

salesforce.com, inc. engages in the design and development of cloud-based enterprise software for customer relationship management. Its solutions include sales force automation, customer service and support, marketing automation, digital commerce, community management, collaboration, industry-specific solutions, and salesforce platform. The firm also provides guidance, support, training, and advisory services. The company was founded by Marc Russell Benioff, Parker Harris, David Moellenhoff, and Frank Dominguez in February 1999 and is headquartered in San Francisco, CA.