Added to YB: 2024-06-10
Pitch date: 2024-06-09
CRM [bullish]
Salesforce, Inc.
-22.65%
current return
Author Info
No bio for this author
Company Info
Salesforce, Inc. provides customer relationship management technology services that connect companies and customers together in the United States, Europe, and the Asia Pacific.
Market Cap
$172.8B
Pitch Price
$239.20
Price Target
N/A
Dividend
0.94%
EV/EBITDA
13.75
P/E
24.00
EV/Sales
4.36
Sector
Software
Category
growth
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)