Salesforce Stock: Analysts Divided on Informatica Deal

The cloud computing giant Salesforce is stirring market attention with its planned $8 billion acquisition of data management company Informatica, though analyst reactions remain mixed. While the acquisition signals Salesforce's ambition to significantly expand its cloud services and data integration capabilities, BMO Capital Markets recently reduced its price target from $367 to $350, maintaining an "Outperform" rating. The company expects the Informatica deal to positively impact operating margins, earnings per share, and free cash flow from the second year post-acquisition. Other analysts display varying degrees of optimism, with price targets ranging from a conservative $200 (D.A. Davidson) to an ambitious $430 (JMP Securities).

AI Growth Potential Awaits Confirmation

Artificial intelligence, particularly the "Agentforce" platform, remains a key growth catalyst for Salesforce, which already boasts over 3,000 paying customers for this solution. Investors are keenly awaiting the May 28 quarterly results, where analysts project a 7% revenue increase and a 10% rise in current remaining performance obligations. Goldman Sachs maintains a $340 price target, seeing an attractive valuation at 17 times expected free cash flow for calendar year 2026—significantly below the industry average of 28. Despite challenges including management changes and potential market saturation, October's Dreamforce conference should provide crucial insights into AI revenue contributions.

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Source StockWorld