As salesforce.com, inc. (NYSE:CRM) sets to release fiscal second-quarter earnings tomorrow evening, analyst Brian White of Drexel Hamilton is weighing in with his forecasts. The analyst is predicting that the tech giant will meet his projection for EPS at $0.32, while slightly surpassing his revenue estimate of $2.513 billion. Looking ahead, the analyst projects 3Q:FY18 revenue of $2.625 billion and EPS of $0.35.
Furthermore, there are a number of other driving trends, which will continue to propel CRM says White, stating, “Trends across our software coverage universe have been positive for the most part this earnings season and we expect strong trends at Salesforce to continue. Moreover, salesforce continues to expand its portfolio and enrich the capabilities of the platform. For example, we remain optimistic around the company’s push to add more intelligence to its clouds with entry into the AI market with the introduction of Salesforce Einstein last September.”
The analyst concludes, “Salesforce’s stock has rebounded by 33% in 2017 on strong performance and we believe the momentum can continue. In our view, the move into the cloud remains in the early stages and we believe Salesforce represents the best vehicle for investors to play the cloud trend as the company moves toward its $20 billion revenue milestone.”
As such, White reiterates a Buy rating on CRM with a target price of $111.00 representing a near 22% rise over current trading levels. (To watch White’s track record, click here)
Of 11 analysts polled by TipRanks (in the past 3 months), 10 are bullish on Salesforce stock, while only 1 is neutral. With a return potential of 12%, the stock’s consensus target price stands at $102.10.