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Salesforce Inc. (NYSE: CRM), formerly Salesforce.com, Inc., is a customer relationship management (CRM) software company. Its customer 360 platform provides a single source for connecting customer data across systems, apps, and devices, allowing businesses to sell, service, promote, and do business from anywhere.
Recent Developments
Key Takeaways from first quarter FY23 financial results
Balance Sheet & Liquidity Position
Key Risks
Second Quarter and full-year Guidance for 2023
Q2FY23 and FY23 Guidance (Source: Q1FY23 Earnings release)
Top 10 shareholders
The top 10 shareholders together form around 34.68% of the total shareholding, while the top 4 constitute the maximum holding. The Vanguard Group, Inc. and Fidelity Management & Research Company LLC hold the maximum stake in the company at 7.80% and 5.97%, respectively, as also highlighted in the chart below:
Source: REFINITIV, Analysis by Kalkine Group
Valuation Methodology: Price/ Earnings Multiple - based Relative Valuation
Source: Analysis by Kalkine Group
*% Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
Stock Recommendation
Over the past six months, CRM’s share price has corrected by 35.18%. The stock is currently leaning towards the lower end of its 52-week range of USD 154.55 to USD 311.75. We have valued the stock using the Price/Earnings multiple-based relative valuation method and arrived at a target price of USD 202.89. We believe that the company is trading at a premium from its peer's average considering strong fundamentals, and competitive advantages in profitability margins give bullish estimates for the upcoming near future.
Considering the strong fundamentals, robust top-line results, positive outlook, associated risks, and current valuation, we give a "Buy" recommendation on the stock at the closing price of USD 168.55 as of June 15, 2022.
One Year Technical Chart, as of June 15, 2022. Data Source: REFINITIV, Analysis by Kalkine Group
Technical Analysis Summary:
*Closing Price as of June 15, 2022.
Technical Indicators Defined
Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect against further losses in case
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above.
Note 3: The report publishing date is as per the Pacific Time Zone
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