Salesforce Inc (NYSE:CRM, ETR:FOO) was hit with a share price target upgrade by Wedbush ahead of its results on Wednesday, which the bank noted could well bring an earnings beat.
According to Wedbush, Salesforce should prove in the post-close update that it has bounced back after a cost-cutting plan and strategic refocus on hiking margins.
“We believe this will be another step in the right direction on the comeback story for Salesforce to further prove to the Street a renaissance of growth is on the doorstep,” Wedbush said.
Salesforce’s share price target was hiked from US$280 to US$325 as a result, marking a prospective rise of 8% on Monday’s close, with an ‘outperform’ rating also being reiterated.
Given wider macroeconomic concerns, focus will be on any updates covering demand for its software, as well as overall appetite for its artificial intelligence offerings, as per Wedbush.
Cross-sales likely did well over the quarter, analysts noted, with major strides also set to have been made in incorporating messaging service Slack, which Salesforce acquired in mid-2020, with the wider business.
“This could fuel some major collaboration deals, we believe, as the pipeline is finally starting to build on this key acquisition,” analysts said.
Market consensus is for Salesforce to report fourth-quarter net income of US$1.26 billion, against a loss last time around, with revenue expected to climb 10% to US$9.2 billion.