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Added to YB: 2024-06-10

Pitch date: 2024-06-09

CRM [bullish]

Salesforce, Inc.

+9.45%

current return

Author Info

No bio for this author

Company Info

Salesforce, Inc. provides customer relationship management technology that connects companies and customers together worldwide.

Market Cap

$243.2B

Pitch Price

$239.59

Price Target

N/A

Dividend

0.64%

EV/EBITDA

19.59

P/E

34.65

EV/Sales

6.04

Sector

Software

Category

growth

Show full summary:
Salesforce, Inc. – The sell-off presents an opportunity. I am buying.

CRM -13% last week on mixed Q1 & slowing growth. Low-teens rev growth vs 20-30% prior; Q2 guide 7-8% below est. But still a tech & AI leader: dominates $65B CRM market (22% share), gaining vs legacy SAP/ORCL. Einstein AI + 250PB data a huge opp. Op margin +12pts in 12 qtrs, FCF +43% YoY. Valuation compelling: 23.5x FY25 EPS (50% disc to hist), 1.15 PEG. 26x FY27 EPS = $338 PT, 13% CAGR. Near-term pressure, but LT thesis intact. Benioff selling a flag but still 4.3% owner.

Read full article (13 min)