Salesforce stock outlook: Morgan Stanley sees a 35% upside

Salesforce Inc (NYSE: CRM) has about doubled in 2023 but a Morgan Stanley analyst is convinced that it’s not out of juice just yet.

Salesforce stock should be worth $350

Keith Weiss upgraded the software firm this morning to “overweight” and raised his price target to $350 which suggests a 35% upside on its previous close.

The analyst is bullish on Salesforce stock because it currently trades at a discount versus other large-cap software names on a growth-adjusted earnings basis. His research note also reads:

Last month, Salesforce Inc said it now expects its operating cash flow to grow by 33% in fiscal 2024. Its previous guidance was for a 30% growth.

Salesforce stock is an AI beneficiary

Keith Weiss agreed in his research note today that the artificial intelligence related benefit will likely take another twelve months at least to realise.

Still, the analyst is constructive on Salesforce stock because he expects Data Cloud to be a meaningful growth catalyst in the coming year.

Note that $CRM has cut a whopping 10,000 jobs over the past twelve months – which makes up for another good reason to remain long this stock, as per the famed investor Jim Cramer.  

In January of 2023, activist investor Elliott Management also revealed a multi-billion-dollar position in the cloud company as Invezz reported here.