Needham Endorses Salesforce's (CRM) Informatica Deal, Keeps $400 Target

Scott Berg, an analyst at Needham, gave Salesforce Inc.’s (NYSE:CRM) acquisition of Informatica a thumbs-up on May 28, reiterating his Buy rating and keeping his price target intact at $400.

Berg believes the acquisition makes strong strategic sense, as Informatica’s data integration platform will strengthen Salesforce’s ecosystem of data and AI offerings. While he acknowledges that the deal appears expensive on several valuation multiples, the analyst argues that the price paid will be justified if the company can integrate it and capitalize on what Informatica offers, especially to enhance its Agentforce strategy.

He expects Informatica to give Salesforce a competitive edge. However, he notes Salesforce’s mixed track record of executing acquisitions (for example, Slack), which remains a concern for this deal as well.

Nevertheless, Salesforce collects and organizes massive amounts of customer data for purposes such as analytics, predictions, and visualizations. Berg views Informatica as instrumental in expanding Salesforce’s Agentic software capabilities, particularly in handling large datasets. Based on these factors, the analyst remains optimistic on Salesforce stock.

Salesforce Inc. (NYSE: CRM) is a cloud-based software company that specializes in customer relationship management (CRM) solutions. The company offers a comprehensive suite of cloud-based applications for sales, service, marketing, and analytics, enabling businesses to connect more meaningfully with their customers.

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 the cheapest AI stock.

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