Goldman Sachs sees 50% upside in Salesforce stock after its Q2 earnings

Salesforce Inc (NYSE: CRM) is already up a whopping 65% this year but a Goldman Sachs analyst is convinced that the rally is far from over just yet.

Salesforce stock could climb to $340

Kash Ranged reiterated his “buy” rating on the cloud company this morning and raised his price objective to $340 – up another 55% from here.

His super bullish call on Salesforce stock arrives only a day after the company reported solid results for its second financial quarter.

Salesforce also issued upbeat guidance for its current quarter this week. You can read its detailed earnings release here.

Salesforce has hit an important milestone

Salesforce saw its operating margin exceed 30% in its recently concluded quarter – a milestone it had not expected before the Q1 of its next financial year.

More importantly, Rangan is convinced that the company can sustain its margins at that level because it’s committed to cutting costs which will serve to even out its investment in artificial intelligence.

Also on Thursday, Microsoft agreed to unbundle Teams from its other offerings in Europe – a win for Salesforce-backed Slack. Note that Bank of America also raised its price target on Salesforce stock today.