Piper Sandler Upgrades Salesforce; cites a favorable risk-reward basis by Investing.com

Investing.com – Piper Sandler turned more positive on Salesforce (NYSE: ), citing a favorable risk-reward basis for the software company.

Piper Sandler upgraded its investment position in Salesforce to “overweight” from “neutral”, noting the potential for free cash flow per share to double to $20 by 2029 from $9.65 in 2024, even if maximum growth remains at reduced levels of 8-9%.

“Compared to large-cap software peers, Salesforce also has the lowest valuation multiple on an EV/S, EV/FCF and P/E basis,” analysts at Piper Sandler said in a note on 24 September.

“Discussions over the past week with the leadership team, partners and customers give us confidence that the new pricing and packaging could expand multi-cloud adoption,” the bank added, “while the promise of Agentforce powered by the Atlas (NYSE:) Reasoning Engine has associate. with Data Cloud could help stabilize demand and/or lead to a recovery entering 2026.”

As a result, Piper Sandler raises its estimates and price target to $325 from $268 using a target EV/FCF of 23x (up from 22x previously) and a discount rate of 14% (16% previously).

Salesforce shares closed Monday at $264.21.