Salesforce Inc. is expected to benefit from a resurgence in enterprise spending as the spread of COVID-19 eases and businesses return to projects that had been put on hold because of the pandemic, but a big acquisition leaves a question mark.
“Partner checks cite deals & projects that were put on hold are now re-emerging, and we saw a big Q/Q drop in partners highlighting COVID-19 as having a negative impact on deal activity ,” said Wood, who has an outperform rating and a $290 price target. “Our checks point to a broader acceleration in digital transformation initiatives such as enterprise CRM, as companies focus on this area of spend heading into the next 12 to 18 months,” wrote Ives, who has an outperform rating and $300 price target on the stock.
Stock movement: Over the company’s fiscal quarter, Salesforce shares advanced 2%, while the iShares Expanded Tech-Software Sector ETF IGV, +0.84% has gained 4%, the S&P 500 index SPX, +0.19% has surged 13%, the tech heavy Nasdaq Composite Index COMP, +0.59% has advanced 7%, and the Dow Jones Industrial Average DJIA, +0.03% — which added Salesforce as a component last year — has rallied 13%.