Salesforce Turnaround Trade Call

about 1 month ago

Chris Marutch

"Yeah, the first one may surprise some investors, and that is Salesforce. Um, the ticker symbol here is CRM. At the time I wrote the article, the company had a free cash flow yield of 5.06%. What may surprise people is, okay, so Salesforce is, as a lot of people know, they were spending a lot of money to acquire their customers through acquisitions which was eating away at their free cash flow. But now that cycle's turned around and they've got enough subscribers coming in, reporting over $10 billion in revenue with 9.7 billion from recurring revenue. Analysts love the stock; they have a price target for Salesforce of 32523 and that's a 33% gain from where the stock is right now."

The speaker highlights Salesforce's turnaround based on improved free cash flow and strong recurring revenue, noting a bullish price target of 32523, implying a 33% upside within the next 12 months despite the current downtrend.

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