Are Analysts Growing Too Optimistic on Salesforce After Earnings?

Apps & Software

Published: August 26, 2020 1:02 pm

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.