Salesforce received two laudatory commentaries from analysts ahead of the customer-relationship-management software stalwart’s earnings report due Wednesday.
Mark Murphy of J.P. Morgan in February had rated Salesforce overweight with a $250 price target.
“Expect a healthy Q2 aligning with improving metrics while acknowledging a tough comparison and noisy margin dynamics, as Slack is factored in,” he wrote in a recent commentary.
“Based upon improving partner feedback across all three business segments and continued improvements in key survey metrics, we expect Salesforce to report a healthy, consistent Q2, as it capitalizes on the global prioritization of customer experience transformation.
“At the same time, we remind investors that FQ2 a year ago was a celestial event, driven by very strong renewals as well as new bookings business along with positive currency benefit and contribution from the massive AT&T deal.”
KeyBanc’s Michael Turits has an overweight rating and $310 price target for Salesforce.
“We see Salesforce’s broad, strategic platform positioned to benefit from a multiyear acceleration in digital transformation of the front office accelerated by COVID-19,” he wrote.
That’s “based on upbeat commentary from implementation partners and strong June quarter earnings from front office peers.”
Further, “while investors’ concerns around Salesforce’s M&A appetite, strategic logic of Slack for $28 billion, and durable margin expansion may linger, we would be buyers at current valuation levels,” he said.
Salesforce, San Francisco, closed the purchase of Slack in late July.
Salesforce stock recently traded little changed at $260.18. It has gained 11% over the past six months through Monday.