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The analysts, who have a Buy rating and a $250 price target on the stock, explained that expectations are low for F1Q due to softer demand checks and tough comps; however, they noted that comps will get easier through F24.
“The focus will be on margins and whether CRM can deliver addtl. upside to the 27% F24 guide,” wrote the analysts.
“Investors will expect commentary on Bain restructuring activity/any GTM changes, AI monetization, and Data Cloud traction. We see CRM as a $10+ earnings story in CY’25, implying a $200-$250 stock at 20-25x.”
Jefferies believes there is more room to drive margins higher for CRM as it lags large-cap peers in the mid to high 30s.
“CRM trades attractively at 16x ’24E EBITDA versus comps at 19x, implying a 15%+ discount to the peer group,” the analysts concluded.
