- Wednesday, October 16, 2024
Wells Fargo analyst Michael Turrin recently downgraded Salesforce to Equal Weight from Overweight. Despite maintaining a $280 price target on the stock, Turrin believes that Salesforce's stock growth potential is limited. Although the stock has gained nearly 100% this year, outperforming the Nasdaq's 43% gain, Turrin suggests that the company has already reached its peak in terms of value from its margin expansion story.
However, Salesforce remains optimistic for the future as customers, who had been cutting back on spending to save costs, have shown signs of increased optimism. The company reported third-quarter earnings and revenue that surpassed Wall Street estimates. Despite this positive news, Turrin advises investors to wait on the sidelines for now.
As for Microsoft, Turrin has named it as a top software pick for 2024. Turrin maintains an Overweight rating on Microsoft's stock with a $425 price target. He believes that Microsoft is well-positioned to benefit from the improving IT budgets and spending. With a wide range of enterprise IT solutions, Microsoft has the potential to capitalize on various categories of IT spend.
Microsoft's stock has performed well this year, with a 57% gain. As the broader IT market continues to improve, Microsoft is expected to be a major beneficiary.
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