Morgan Stanley Maintains Overweight on Salesforce (CRM), Sees Long-Term Value in Informatica Deal

We recently published a list of 12 AI Stocks on Latest News and Ratings. In this article, we are going to take a look at where Salesforce, Inc. (NYSE:CRM) stands against other AI stocks on latest news and ratings.

On May 28, Morgan Stanley analyst Keith Weiss reiterated an “Overweight” rating on Salesforce, Inc. (NYSE:CRM) with a $393.00 price target. Salesforce is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.

According to the firm, the company’s recent acquisition of Informatica may not have been what the market expected, but its terms are seen as favorable. It announced the agreement to acquire Informatica for an estimated $8 billion in equity value.

Morgan Stanley Maintains Overweight on Salesforce (CRM), Sees Long-Term Value in Informatica Deal

A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.

The firm discussed concerns about Informatica’s legacy, particularly on-premise data assets, which may not match with investor expectations for Salesforce’s growth vision. In other words, there are fears that Informatica might not be a good strategic fit, but the firm believes that the terms of the deal are advantageous.

Moreover, Informatica’s strengths in handling, organizing, and securing data may help boost Salesforce’s Data Cloud and allow its AI tool, Agentforce, to work better.  It also believes that the move will help Salesforce improve its operating margins, earnings per share (EPS), and FCF in FY28 (CY27) driven by substantial cost synergies.

Overall, CRM ranks 3rd on our list of AI stocks on latest news and ratings. While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x 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.