Are Analysts Growing Too Optimistic on Salesforce After Earnings?

Salesforce.com Inc. (NYSE: CRM) reported its most recent quarterly results after the markets closed on Tuesday. While results were incredibly positive, analysts juiced this stock and now it is going parabolic.

24/7 Wall St. has included some highlights from the earnings report, as well as what analysts are saying about Salesforce after the fact.

The firm said that it had $1.44 in earnings per share (EPS) and $5.15 billion in revenue, versus consensus estimates that called for $0.67 in EPS and $4.9 billion in revenue. The same period of last year reportedly had $0.66 in EPS and $4.00 billion in revenue.

Subscription and support revenues for the quarter were $4.84 billion, an increase of 29% year over year. Professional services and other revenues for the quarter were $0.31 billion, an increase of 23%.

Looking ahead to the fiscal third quarter, the company is calling for EPS in the range of $0.73 to $0.74 and revenue between $5.24 billion and $5.25 billion. The consensus estimates are $0.83 in EPS and $5.28 billion in revenue for the quarter.

Here’s what analysts had to say:

  • Morgan Stanley reiterated an Overweight rating and raised its price target to $275 from $195.
  • Cowen reiterated an Outperform rating and raised its price target to $270 from $210.
  • Truist reiterated a Buy rating and raised its price target to $287 from $210.
  • Monness Crespi & Hardt reiterated a Buy rating and raised its price target to $275 from $195.
  • Loop Capital reiterated a Sell rating and raised its price target to $160 from $150.
  • Oppenheimer reiterated an Outperform rating and raised its price target to $265 from $205.
  • Canaccord Genuity reiterated a Buy rating and raised its price target to $270 from $200.
  • Citigroup reiterated a Buy rating and raised its price target to $300 from $196.
  • Wedbush reiterated an Outperform rating and raised its price target to $300 from $250.
  • Raymond James reiterated a Strong Buy rating and raised its price target to $255 from $230.
  • Stifel reiterated a Buy rating and raised its price target to $295 from $220.
  • Mizuho reiterated a Buy rating and raised its price target to $275 from $230.
  • RBC reiterated an Outperform rating and raised its price target to $275 from $220.
  • Piper Sandler reiterated an Overweight rating and raised its price target to $285 from $210.
  • Credit Suisse reiterated an Outperform rating and raised its price target to $245 from $200.
  • Goldman Sachs reiterated a Buy rating and raised its price target to $252 from $220.
  • JPMorgan reiterated a Buy rating and raised its price target to $250 from $200.

Salesforce stock traded up about 27% on Wednesday, at $274.58 in a 52-week range of $115.29 to $277.95. The consensus price target is $220.17.

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