(Credit: Transcript by OpenAI Whisper)
Salesforce Inc. just won itself a new bull with Morgan Stanley analysts predicting that the artificial intelligence wave will help propel the software makers' shares to record levels. Even though Salesforce has surged 96% this year, Morgan Stanley's Keith Weiss's new price target of $350 sees a further 34% gain for the stock over the next 12 months, far surpassing 2021's all-time high. The stock rose as much as 3.1% on Thursday after Weiss hiked his recommendation to overweight from equal weight, turning positive on the stock since a downgrade over the summer. Low investor expectations versus potential top-line upside drivers in price increases, product bundling and data cloud adoption frame an attractive risk-reward for Salesforce, Weiss wrote in a note. It may take time for artificial intelligence to fully take off, but Weiss sees Salesforce's data cloud suite gaining traction with companies preparing for the eventual wide adoption of the technology. While Weiss's outlook for the stock is particularly bullish, with consensus predicting just 7.7% of upside for Salesforce over the next year, according to data compiled by Bloomberg, analysts have previously touted the company as a beneficiary of the advancement of artificial intelligence.
Key takeaways from the article include:
Morgan Stanley's Optimism for Salesforce: Analyst Keith Weiss from Morgan Stanley has set a new price target for Salesforce Inc. at $350, anticipating a 34% increase in the stock's value over the next 12 months. This prediction exceeds Salesforce's all-time high in 2021.
AI as a Growth Driver: The expected surge in Salesforce's stock is attributed to the potential impact of artificial intelligence, with the company's data cloud suite gaining traction as businesses prepare for wider AI adoption.
Risk-Reward Balance: Weiss highlights low investor expectations versus potential revenue growth from price increases, product bundling, and data cloud adoption as key factors for an attractive risk-reward scenario for Salesforce.
Salesforce's AI Advantage: While the full impact of AI might take time to materialize, analysts consider Salesforce as a beneficiary of advancements in AI technology.