Salesforce (CRM) didn’t provide new guidance during its investor day, where the theme was “durable growth powered by competitive advantage,” but said it plans to provide guidance for calendar 2019 and fiscal 2020 in recent weeks, Wedbush analysts said in a note to clients Thursday morning.

The new guidance likely will be during the company’s November third-quarter call and is expected to expand operating margins again, the firm’s analysts said.

“Most significantly, the company is taking initial steps to broaden its focus to include data integration within customer deployments of Salesforce clouds and instances, and between Salesforce deployments and back-office data sources,” Wedbush analysts Steve Koenig and Ahmad Khalil said. “This is a more difficult technology
problem than Salesforce typically addresses, but a potentially large revenue opportunity.”

Shares were up 0.6% in pre-market trading Thursday.

Salesforce’s multiples have grown in the past three months, but still are “reasonable” for the bellwether company that’s driving growth in large markets for CRM, commerce and analytics, Wedbush said. While further multiple expansion isn’t likely, sustained growth should support outperformance for the next 12 months, the analysts said.

Chief Executive Marc Benioff spoke off-the-cuff at investor day, as usual, and his comments were more “heartfelt” than his conference keynote address as he articulated is causes with passion and addressed gender equality, diversity and climate change.

“Mr. Benioff sees CEOs continuing to invest aggressively, in the US as well as Europe and Japan. US tax cuts spurred multinationals to invest, but the underlying imperative is to participate in the “4th industrial revolution,” the Wedbush analysts said. “There’s no continuous upcycle, but he doesn’t see signs of contraction in at least the next two quarters, and Salesforce’s recurring revenue model mitigates the impact of a downturn on the company’s results.”

While it didn’t offer any new guidance, Salesforce reiterated its fiscal 2022 revenue goal of $21 billion to $23 billion. The company is expected to provide initial 2020 guidance “in a few weeks” and likely will expand operating margins for six years in a row.

Wedbush reiterated its outperform rating on the company and raised its 12-month price target to $180 from $170 on higher peer multiples.

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