Goldman Sachs sees Salesforce rallying more than 50% after strong earnings

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Salesforce reported fiscal second-quarter earnings and revenue that beat expectations.

Salesforce 's latest earnings have Goldman Sachs even more excited for the tech stock's future. Shares advanced 5.3% before the bell on Thursday. A day earlier, Salesforce reported fiscal second-quarter earnings and revenue that beat expectations , while also issuing better-than-forecasted guidance for the current quarter. Goldman Sachs analyst Kash Rangan raised his price target on Salesforce by $15 to $340 per share, implying upside of 58.1%. Rangan has a buy rating on the stock.

But he did point to stabilizing year-over-year growth in sequential net-new dollars among multiple businesses including sales, service and platform that can signal the top line is stabilizing This growth can also support the view that revenue growth will hit a low point this year, Rangan said. And he said the company's quarterly report could also help catalyze a re-rating.

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