Opinions
Kim Bolton
SalesForce.com Inc.
CRM-N
WEAK BUY
Jun 18, 2025
Stock price when the opinion was issued
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Premium contentCRM is building cash reserves, aggressively buying back shares and retiring debt. It trades at 4x book and supports a 10% ROE. It manages its platform efficiently and is well positioned for an improving economy. We recommend setting a stop-loss at $183, looking to achieve $352 -- upside potential of 32%. Yield 0.3%
(Analysts’ price target is $352.14)Premium contentPremium contentCRM is like Uber in the $60s. Their last earnings were great. The CEO will focus on free cash flow and margins and growth. The market is completely missing this, expecting some sort of AI to take over what CRM is doing. Absurd. CRM is already using AI. Is unloved, caught in the hedgefund shorts. This can easily rally 20% after earnings.
The collection of data is becoming more important especially for corporations. It does well in software that collects consumer info and consolidates it, and is a global leader in this field. It is becoming an operating system for the modern enterprise and is delivering recurring revenue from AI and the data cloud. Trades at a good valuation of 22 times earnings and has expanding margins. She sees 40% upside and gives it an 8 out of 10 fundamentally.
(Analysts’ price target is $346.43)Software as a service has done poorly this in this name and others, over fears that AI will take it over. He's been adding shares, though. Is well-positioned over many apps, the mid-20s valuation is reasonable and there are many institutional owners. In AI, we're moving out of building data centres and moving more to the software stage.
He targets $325. It's puzzling that has lagged the market. They tried really hard with Einstein to bring out the agentic AI, but they discovered it needs some human intervention. Great management and aggressive sales and marketing. Is among his top 12 holdings.