Salesforce (NYSE: CRM) stock price declined sharply in the past couple of months after hitting an all-time high of $167. CRM shares are down almost 10% in the past three months. The downtrend is prompted by trader’s concerns over macroeconomic headwinds.
Market analysts believe the dip in CRM share price is presenting a buying opportunity. They expect Salesforce stock price to bounce back sharply in the coming days.
Analysts are Bullish about Salesforce Stock Price
Bank of America Merrill Lynch has included CRM in his favorite stock picks for this year. On the other hand, Compass Point Research has set a Salesforce stock price target at $190 with a buy rating.
The firm says CRM continues to generate robust growth in all categories, which is helping it to get market share from big players.
Stephens’ analyst James Rutherford suggests investors buy this stock. Rutherford claims the company has been “out-of-favor,” but the firm’s checks “indicate strong underlying business trends.
Financial Numbers are Supporting CRM Shares
The company has generated solid financial growth in the latest quarter. Its second-quarter revenue of $4 billion increased by 22% from the year-ago period. In addition, its current remaining performance obligation rose 23% year over year to $12.1 Billion.
“An enormous wave of digital transformation is sweeping across every industry, and major brands, like FedEx, AXA and Unicredit, turned to Salesforce in the quarter to propel their growth,” said Keith Block, co-CEO, Salesforce.
The company has raised its outlook for third-quarter and full-year after strong first-half results.
It now expects third-quarter revenue in the range of $4.44 billion to $4.45 billion. This represents a 31% growth from the previous year period. For the full year, the company anticipates revenue growth of 27% from last year.
Salesforce stock price is receiving support from several catalysts. It does not offer any dividends to investors. Therefore, the company appears in a position to invest aggressively in growth opportunities.