Canaccord Genuity Analyst Calls Salesforce (NYSE:CRM) a ’Relatively Low-Risk Bet’ - Here’s Why
Wall Street's confidence in Salesforce hits new highs as analysts spotlight the cloud giant's defensive positioning.
The Bull Case for Stability
Canaccord Genuity's latest analysis positions Salesforce stock as a sanctuary in turbulent markets—emphasizing predictable revenue streams and enterprise customer stickiness that would make even the most cautious investor consider taking the plunge.
Enterprise Fortress
With recurring subscription models and cross-selling opportunities across its ecosystem, Salesforce continues building what analysts call "the enterprise software equivalent of a moat"—though some skeptics might argue even moats can evaporate when tech disruption hits.
The Risk-Reward Calculus
While no equity investment comes with zero risk, the analyst's assessment suggests Salesforce represents one of the cleaner stories in enterprise software—a refreshing change from the speculative frenzy dominating other corners of the market. Because nothing says 'low-risk' like betting on a company trading at premium multiples in a sector known for overnight reinvention.
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Here’s Why the Analyst Is Bullish
Hynes is bullish about the company’s strategy to become a key provider of Agentic Enterprise solutions, which combine data, AI agents, and applications.
According to management, a typical customer using around three mid-tier cloud products could triple or even quadruple their annual recurring revenue (ARR) spend by upgrading to an Agentic Enterprise model. This points to the growth potential of Salesforce’s Agentforce strategy.
Also, Salesforce is expanding its sales capacity to meet rising demand, while offering more flexible licensing options. The analyst believes these changes WOULD fuel a “consumption flywheel,” where increased usage leads to more use cases and more revenue.
Valuation Still Attractive
Despite recent gains, Hynes believes Salesforce stock remains undervalued, especially compared to other large-cap software names.
Further, he expects tangible growth improvements within a year, with early signs possibly appearing even sooner. Salesforce’s ongoing stock buybacks also support the bullish case.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 30 Buys, nine Holds, and one Sell assigned in the last three months. At $326.57, the average Salesforce stock price target implies a 31.91% upside potential.
