Salesforce Inc. stock could see its best monthly run since August 2020, albeit due to layoffs, a board shake-up and other moves to cut costs. But Morgan Stanley analysts on Monday said they still saw room to make operations leaner and boost profit. Analysts at the bank raised their price target on Salesforce stock
CRM,
+0.14%
to $236 from $228. They maintained their version of a buy rating on the stock.
Shares of Salesforce — whose software helps businesses share their interdepartmental data and use it more effectively — rose 0.7% to $165.70 on Monday, and are up 24.2% this month. Those gains follow a lengthy decline that began in 2021, following a surge in demand for digital resources during the first two years of the pandemic. But as it makes profitability more of a priority, Salesforce in January said it would lay off around 10% of its staff and shrink the amount of office space and other real estate that it uses. Not long after, the company appointed three new board members, following pressure from activist investors. ValueAct Capital, Elliott Management and Starboard Value have stakes in the company. The moves, the Morgan Stanley analysts said, represent Salesforce’s first big restructuring in its 23-year history, as it puts more focus on profitability after a long stretch of focusing on growth. The analysts said the company could do mo …