Robust demand for cloud-based solutions, against the backdrop of rapid digital transformation across industries, is driving the demand for Salesforce’s (CRM) products. Its focus on bringing products to the market that are more aligned to customers' needs is noteworthy. The company is also known to reinvest its capital back into the business aggressively, feeding its rapid growth.

Moreover, the coronavirus crisis has expedited digital transformation across industries to adapt to the new “everything-from-home” era. This has made Salesforce’s solutions even more relevant. (See Salesforce stock chart on TipRanks)

Importantly, the acquisition of Slack in July this year is expected to thrust the company to the top of the enterprise team collaboration solution space. The acquisition should also allow Salesforce to better compete with Microsoft’s (MSFT) Teams.

In May this year, Salesforce announced that the first-ever global Dreamforce event will commence in cities around the world, including San Francisco, New York City, London, and Paris, from September 21 through September 23. Notably, the event will end with a virtual Investor Day program.

Ahead of this much anticipated mostly-digital event, Monness Crespi Hardt analyst Brian White weighed in on the company’s outlook and maintained a Buy rating on the stock, with a price target of $300. He was encouraged by the leading position of Salesforce in the digital solutions world.

“We believe Salesforce is uniquely positioned to capitalize on accelerated digital transformation efforts with a platform that is stronger, more relevant than ever, while benefiting from a global economic recovery,” he explained.

Reminiscing on last year’s virtual Investor Day, White said that Salesforce had revealed a $50 billion revenue target for 2026, comprising approximately $46 billion from core Salesforce business and about $4 billion from the Slack synergies. White expects Salesforce to focus its discussion at the Dreamforce event on the Slack acquisition.

Notably, last month, Salesforce launched the Slack-First Customer 360. That is a single platform to bring employees, customers, and partners to connect with the apps and workflows needed to complete tasks. At Dreamforce, Salesforce is also expected to launch new innovations involving Slack.

The analyst believes that the Slack acquisition is a major growth driver for Salesforce, providing enhanced financial flexibility for the forthcoming months. Moreover, Salesforce’s past acquisitions, like those of MuleSoft and Tableau, have brought tremendous benefits to the company: during the company’s second quarter fiscal 2022, Tableau constituted 10% of Salesforce’s total deals, while MuleSoft constituted 80%.

The consensus rating for the stock is a Strong Buy, based on 29 Buys and 6 Holds. The average Salesforce price target of $304.18 indicates 19.7% upside potential from the current level.

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Disclosure: At the time of publication, Chandrima Sanyal did not have a position in any of the securities mentioned in this article.

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The post Salesforce Business Definitely Not Slack-ing appeared first on TipRanks Financial Blog.

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By: Chandrima Sanyal
Title: Salesforce Business Definitely Not Slack-ing
Sourced From: blog.tipranks.com/salesforce-business-definitely-not-slack-ing/
Published Date: Tue, 14 Sep 2021 14:14:40 +0000

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