3 Reasons Salesforce Could Be Back at All-Time Highs by June

Core Viewpoint - Salesforce Inc. is experiencing a resurgence in its stock price, with shares up over 25% since April and trading just below $290 ahead of upcoming earnings [1][2]. Group 1: Technical Analysis - The technical setup for Salesforce is bullish, with the stock's chart showing a decisive upward trend after a decline in early 2024 [3]. - The MACD indicator remains positive and trending higher, while the RSI is around 60, indicating room for further growth before reaching overbought conditions [3]. - The stock has reclaimed the 50-day moving average and surpassed March highs, suggesting a potential breakout towards $370 if earnings confirm the trend [4]. Group 2: Analyst Sentiment - Analysts are increasingly optimistic, with Mizuho reiterating an Outperform rating and setting a price target of $380, citing Salesforce's position in enterprise AI as a key driver for long-term value [5]. - Needham also maintained a Buy rating with a more aggressive price target of $400, highlighting the Agentforce platform as a significant example of AI innovation [6]. - Analysts believe Salesforce's development of a comprehensive AI platform for customer support and HR functions will enhance its competitive edge [7][8]. Group 3: Earnings Performance - Salesforce has shown consistent earnings performance, achieving its highest revenue ever last quarter, which reflects steady top-line growth and margin expansion [9]. - The company has a strong track record of meeting earnings expectations, missing only a few times by minor margins, and maintaining robust guidance even in challenging macro conditions [10]. - Upcoming earnings are not expected to set an unrealistically high bar, and continued growth in subscription revenue and AI feature adoption could lead to a stock breakout [11]. Group 4: Market Position - Salesforce has lagged behind other large-cap tech stocks in 2024 but is now reclaiming key levels, with technical indicators pointing upward and analysts turning bullish [12]. - If the upcoming earnings confirm positive trends, Salesforce could quickly return to all-time highs [13].