Analyst Rating from Jefferies for Salesforce
Jefferies has maintained its rating for Salesforce with a price target of $375, classifying it as “Buy”. This rating indicates a positive assessment of the stock and is relevant for private investors, as Salesforce plays a leading role in the software and cloud sector.
Key reasons for this buy recommendation include the growth of remaining performance obligations (RPO) from contracts and an increased revenue target. These metrics suggest that Salesforce continues to expect stable and growing revenues from existing contractual commitments, which is seen as an indicator of future revenue growth.
Challenges in the Core Cloud Business
However, Jefferies also points out that the momentum in Salesforce’s core cloud business is waning and a large part of the increased revenue expectations is driven by currency effects. This means that despite positive overall forecasts, some challenges remain.
For investors, the price target of $375 as well as the growth of performance obligations are important indicators for assessing the potential of Salesforce stocks. The price target reflects the expectation that the stock can gain value in the future.
Analysts’ Outlook and Future Developments
Additionally, the latest analyst outlook based on the quarterly report from April 2025 shows positive developments: the expected earnings per share are rising significantly (from $1.58 last year to an estimated $2.55), as is revenue (up about 6.77 percent compared to the same quarter last year). For the fiscal year, an earnings per share of an average of $11.17 is even expected with revenue of around $40.82 billion – both significant increases compared to the previous year.
In summary, the “Buy” rating with a price target of $375 by Jefferies provides a solid basis for private investors to assess a potentially attractive investment opportunity in the software and cloud market via Salesforce. However, potential risks such as waning growth dynamics in the core business should also be considered.