Salesforce likely to offer up ‘strong’ results, guidance: Wedbush

Salesforce (NYSE:CRM) is set to report fiscal third-quarter results tomorrow after the close of trading, and Wedbush Securities is expecting a “strong” set of results and guidance from the Marc Benioff-led company.

“Our recent field checks indicate that more customers are seeing elevated use cases for CRM’s entire product portfolio while advancing into its next wave of growth and capitalizing on the transformational demand for AI solutions by increasing automation and efficiencies across organizations,” analyst Dan Ives wrote in a note to clients. “We continue to believe the risk/ reward on CRM is very compelling at current levels as the Agentforce strategy plays out over the coming years, while the installed base opportunity is still underappreciated by the Street.”

Ives maintained his Outperform rating and $375 price target on Salesforce, and added that the stock is one of the firm’s “favorite tech names heading into 2025.”

The introduction of Agentforce by Salesforce in September has helped usher in added confidence that the company is monetizing artificial intelligence, with Ives suggesting that the company could see a boost of $4B in annual revenue by 2025, based on estimates and field work.

“While this will not happen overnight, the AI monetization story at CRM will be a key growth catalyst for the tech stalwart over the coming years with Agentforce representing the company’s latest advancements in the AI space with AI agents built with the latest of AI capabilities to train these models that handle routine use cases, so humans can focus on handling more complex situations with significantly higher resolution on sales and services issues,” Ives added.

As such, Salesforce’s AI initiatives could be worth roughly $40 per share as the company’s monetization efforts take shape over the next 12 to 18 months.

A consensus of analysts expects Salesforce to earn $2.45 per share on $9.35B in revenue.