Stockchase Opinions

Kevin Simpson SalesForce.com Inc. CRM-N BUY Feb 14, 2025

Is excited with their software pivot. Have $12 billion in free cash flow, fueling $9 billion in buybacks. Dividend is small, but will rise.

$326.940

Stock price when the opinion was issued

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DON'T BUY

They're pushing AI and introducing a lot of services to customers. Good. He uses CRM software. They are increasing rates to customers by 9%. True, a lot of services are not necessary, so he's cancelled them for next year. Other companies will nip at CRM's heels as they roll out more AI. CRM is highly acquisitive. The high USD is hard on non-American customers.

BUY ON WEAKNESS
For growth in a portfolio.

One of the leaders in the technology space, bringing automation into offices. Well managed. Has done extremely well, and this should continue. Fits well into the grand theme of electronics replacing humans.

BUY ON WEAKNESS

A strong believer in the CEO, and Morgan Stanley praised how CRM has benefitted its clients. Hold or buy dips.

BUY

They report end of the month; he expects a strong quarter based on AI. Acquisitions they made are becoming accretive.

WATCH

Is up ahead of earnings today. It's all about Agentforce--what has been the adoption been for this AI tool? Guidance is 9.2%. Will they hit it?

HOLD

12-month price target of $400, good runway still. Has really monetized the application side of AI, the golden goose that everyone was aiming for. Should report in next couple of weeks.

BUY

Just bought it. Likes the AI play. Sold off on weak guidance. AgentForce's margins are expanding up to 34%. Profitable.

BUY

They're in the sweet spot for AI which needs customer data--which CRM has. They have a huge install base. Shares are -16.5% this year, so it looks good.

TOP PICK

Their AgentForce is a true Agentic AI, which will revolutionize tech. He targets $379.

(Analysts’ price target is $375.82)