Government Contracts Powering Salesforce (CRM) Bullish Thesis

Salesforce, Inc. (NYSE:CRM) is one of the most promising cloud stocks according to analysts. Salesforce, Inc. (NYSE:CRM) and the US Army reached an agreement on January 26, which will enable the company to improve the Pentagon’s data analytics capabilities and deploy AI agents. It is an indefinite-delivery, indefinite-quantity (IDIQ) contract worth up to $5.6 billion, with a 5-year optional extension period. In a press release, the company said the following about the deal:

”Through the new contract, the Army and the DOW can leverage Salesforce’s trusted data fabric and compliant cloud technologies as the foundation for its agentic enterprise and accelerate decision-making, optimize operations, and improve support for millions of warfighters, civilian personnel, industrial base partners, and dependents.”

Why Dividend Investors Should Watch Salesforce’s (CRM) Innovation Edge

On January 20, Deutsche Bank analyst Brad Zelnick lowered the firm’s price target for Salesforce, Inc. (NYSE:CRM) stock from $360 to $325 while maintaining a Buy rating. The revised price target still offers a further 43% upside from the current levels. This upside is consistent with the median Wall Street analysts’ upside estimate of 51% based on 58 analysts covering the stock.

Salesforce, Inc. (NYSE:CRM) operates as a provider of customer relationship management technology. The company’s technology connects global customers and companies. It offers Agentforce, Salesforce Starter, Slack, Tableau, Industries AI, and integration and analytics solutions. The company was founded in 1999 and is based in San Francisco, California.

While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.