Salesforce.com (NYSE:CRM) shares gained more than 4% intra-day today after the company announced a 9% price increase across various products.
Evercore ISI reiterated an Outperform rating and a price target of $240.00 on the company, highlighting that this is the first price hike in seven years for Salesforce, during which the company has made significant investments of over $20 billion in research and development and introduced 22 software releases with numerous features. This includes recent additions such as the AI Cloud and ‘GPT’ capabilities across its clouds.
The analysts believe that while some customers may express dissatisfaction with the price increase, considering the seven-year interval, a 9% increase seems reasonable. The analysts expect these price actions to provide positive momentum for Salesforce in the second half of 2024 and the first half of 2025.