BofA Securities raised its price target for Salesforce.com to $350 from $300. The adjustment follows healthy deal activity for the customer relationship management giant.

BofA Securities reiterated its buy recommendation on Salesforce.com on Tuesday and kept a positive outlook for the company, increasing its price objective from $300 to $350. Conversations with about a dozen significant Salesforce partners led to this modification, as deal activity for the industry leader in customer relationship management has been steady at recent healthy levels.

Despite more difficult sales cycles that frequently call for extra executive clearance, the firm's data indicates that the expenditure environment has improved. Stable sales and service cloud transactions, results that are balanced across major industry verticals with a noticeable upswing in the financial sector, and a growing interest in Salesforce's data cloud are among the key themes that BofA highlights.

BofA's estimate for Salesforce is supported by the expectation of consistent top-line growth in the mid-teens and, in an optimistic scenario, a 200–250 basis point increase in margin over the next three years. This might result in free cash flow (FCF) growing at a strong compound annual growth rate of 31% over that time. Because of its performance, BofA has classified Salesforce as an emerging quality Growth at a Reasonable Price (GARP) stock in the software industry. The business expects that its shares will continue to rise in value and that its FCF growth estimates will be revised upward.