Salesforce (CRM) Gets $425 Price Target as Analyst Backs Informatica Deal and AI Push

We recently published a list of 10 AI Stocks Gaining Wall Street’s Attention. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks gaining Wall Street’s attention.

One of the most notable analyst calls on Tuesday, May 27, was for Salesforce, Inc. (NYSE:CRM). Wedbush analyst Daniel Ives reiterated an “Outperform” rating on the stock with a $425.00 price target. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.

Wedbush has commented about the recent deal between Salesforce and Informatica, citing that the proposed acquisition of enterprise cloud software company Informatica is the “right deal at the right time” for Salesforce.

“Despite CRM not pursuing a big deal of this size since Slack in 2021 for $28 billion, we view this deal as a smart and strategic deal for customer acquisition as INFA’s strong customer base of over 5,000 customers, including ~2,500 cloud subscription ARR customers and over 80% of the Fortune 100, leverages this technology for analytics and AI-powered processes which could strengthen CRM’s AI strategy.”

-Wedbush analysts wrote in a note to clients.

“INFA has been a long-time acquisition candidate, and we believe this has been in the works for quite a while as this would be smart a strategic move by CRM in our view as INFA would bolster its AI capabilities by improving its strategy leveraging proprietary data as there are cost synergies of 15% to 20% for CRM through this acquisition based on our analysis.”

The analysts further noted that the deal would pave the way for more artificial intelligence opportunities for Salesforce, and even more cross-selling opportunities.

Overall, CRM ranks 3rd on our list of AI stocks gaining Wall Street’s attention. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks on Analyst’s Radar Today and 10 AI Stocks on Wall Street’s Radar. 

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