What happened
Specialty tech stock Salesforce (NYSE: CRM) smoothly got over the hump of Hump Day, with its price inching up by nearly 1.5%. The latest analyst take on the company is positive, and investors obviously chose to accept the new evaluation.
So what
On Tuesday, after market close, Credit Suisse (NYSE: CS) prognosticator Sami Badri assumed coverage of Salesforce stock. He is unabashedly bullish on the company, as he's tagged it with an outperform (buy, in other words) recommendation at a price target of $225 per share. That level is nearly $100 higher than its latest closing price.
The reasoning behind Badri's take on Salesforce stock wasn't immediately apparent. Nevertheless, it's not hard to be positive about it these days. The shares have taken a beating of late following a third-quarter earnings report that disappointed many investors, not to mention the unexpected departure of co-CEO Bret Taylor. This exacerbated the already-gloomy sentiment clouding even the best tech stocks on the market.
Yet Salesforce's business remains strong. With the popular corporate messaging app Slack now in its pocket, thanks to a 2021 acquisition, the company managed to lift its revenue a sturdy 14% higher in that quarter to almost $8 billion. Non-GAAP (adjusted) net income also headed north at a 10% clip to just under $1.4 billion. That, by the way, constitutes a thick net margin approaching 20%.
Now what
Salesforce is a reliably solid performer, and despite some hiccups with that C-suite development and challenges with integrating Slack, it still has a bright future. Badri's evaluation of the company seems realistic, and it is obviously resonating with the market.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Salesforce. The Motley Fool has a disclosure policy.
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