Bank of America Securities Reaffirms Buy Rating on Salesforce (CRM) Stock

Salesforce, Inc. (NYSE:CRM) is one of the Best Cloud Computing Stocks to Invest in Now. On July 14, Bank of America Securities analyst Bradley Sills reaffirmed a “Buy” rating on the company’s stock with a price objective of $350. The positive outlook comes as the analyst sees a rebound in growth for its largest business, Service Cloud. The analysts led by Brad Sills mentioned that Service Cloud is expected to see better growth in the upcoming quarters.

The analysts also mentioned that their estimate for FY 2026 Service Cloud revenue stood at $9.7 billion, representing 25% of the total subscription revenue. As per the analysts, the Service Cloud growth has bottomed and can accelerate to 9% in the upcoming quarters and is expected to trend towards 12% longer term. Overall, the Sills and his team maintained their rating on Salesforce, Inc. (NYSE:CRM)’s stock, considering their view that top-line growth has bottomed and can reaccelerate from here.

The analysts believe that add-ons and Agentforce upsell are the growth drivers. With the US dollar weakening in Q1, Salesforce, Inc. (NYSE:CRM) anticipates a currency tailwind for the business. Salesforce, Inc. (NYSE:CRM) expects Q2 2026 revenue guidance of $10.11 billion – $10.16 billion, up 8% – 9% YoY and 7% – 8% in CC. Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:

“Salesforce, Inc. (NYSE:CRM) is a leading technology company that offers a collection of software products aimed at providing businesses with a full front office productivity suite. We believe Salesforce is a wonderful business going through a transformation into a profitable, shareholder-focused enterprise. Since management announced their renewed focus on operating discipline a couple years ago, Salesforce’s margins have increased substantially. In our view, there is further room to improve as the company leverages its unique position to help businesses deploy AI and continues to restructure its sales organization. Since exiting our position in Salesforce in December, the stock price has declined by over 30% despite continuing to report fundamental results that are in line with our expectations. We were pleased to buy the stock, but we first established our position using a put writing strategy to lower our entry price. We believed the puts were overvalued as they implied that Salesforce was among the most volatile large companies, which was completely at odds with our assessment of its business value.”

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Disclosure: None. This article is originally published at Insider Monkey.