Salesforce Inc. (NYSE:CRM) witnessed a remarkable surge of approximately 10% in its stock on Thursday, reaching a nearly two-year peak. The surge followed the U.S. cloud and business software company’s release of stellar third-quarter results, driven by robust demand for its services.
After the closing bell on Wednesday, Salesforce reported revenues of $8.72 billion and an adjusted profit of $2.11 per share, surpassing Wall Street expectations. Additionally, the company projected fourth-quarter revenue to range between $9.18 billion and $9.23 billion, with an adjusted profit ranging from $2.25 to $2.26 per share—both exceeding analyst estimates.
Salesforce shares soared by 9.6%, reaching as high as $252.50, marking their highest level since January 2022 and poised for the most substantial daily percentage gain since March of this year. The stock demonstrated a 7% increase, contributing roughly $16 billion to Salesforce’s market capitalization. With this surge, the stock has achieved an impressive 87% year-to-date gain, positioning it for its most exceptional annual performance since 2009.
Numerous analysts, including those from Morgan Stanley, Evercore, Wells Fargo, and Deutsche Bank, responded to the positive results by elevating their price targets for Salesforce’s shares. As per LSEG data, the current median price target from 48 analysts covering Salesforce is $275, up from $257.50 a month ago. Their present recommendation stands at “buy.”
According to BofA Global Research analysts, led by Brad Sills, in an investor note, “Salesforce represents a top AI (artificial intelligence) opportunity.” They expressed increased confidence that the company is on the “path back to sustained mid-teens subscription growth.”
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Author Faith Yakubu 
