Salesforce (CRM) approaches the Q4 earnings with stable checks, price hikes, and an easier bookings comp, reflecting a positive setup, “while valuation remains undemanding,” Morgan Stanley said Monday in a report.
Positive performance in Sales Cloud, strong showings in Industries/MuleSoft, and underperforming Marketing defined the quarter. “Positive partner commentary on Data Cloud reaffirms our view of Salesforce’s underappreciated positioning ahead of future GenAI product adoption,” the note said.
Clarity on Data Cloud and consumption pricing for Einstein 1, the company’s conversational AI assistant integrated into every Salesforce application, coupled with a higher 2025 non-GAAP EPS, positions Salesforce for growth with significant upside potential, Morgan Stanley said.
Salesforce is performing in line with “Large Cap Software intra-quarter,” and maintains a valuation discount despite favorable factors. With an easier bookings comp, stable checks, and ongoing price increases, “we view Salesforce’s upcoming [fourth quarter] earnings as a likely positive catalyst for shares,” the note said.
Morgan Stanley kept its Salesforce rating at overweight with a price target of $350.