06:24 AM EST, 12/02/2024 (MT Newswires) -- Salesforce ( CRM ) is expected to report strong fiscal third-quarter results this week amid elevated use cases for its entire product portfolio and demand for artificial intelligence solutions, according to Wedbush Securities.

The brokerage is projecting "modest" upside to the software maker's headline results versus Wall Street estimates, it said in a Sunday client note. Wedbush said the risk and reward profile on the company's stock is "very compelling" at current levels as its new agent-focused platform Agentforce plays out over the coming years. Salesforce's ( CRM ) "installed base opportunity is still underappreciated by the Street," according to Wedbush.

The current analyst consensus on FactSet is for Salesforce ( CRM ) to post per-share non-GAAP earnings of $2.44 and revenue of $9.35 billion for the third quarter. The company is scheduled to disclose its results after the markets close Tuesday.

"Our recent field checks indicate that more customers are seeing elevated use cases for (Salesforce's ( CRM )) entire product portfolio while advancing into its next wave of growth and capitalizing on the transformational demand for AI solutions by increasing automation and efficiencies across organizations," Wedbush analysts led by Daniel Ives wrote in the note.

Monetizing artificial intelligence within Salesforce's ( CRM ) installed base is a "major land grab opportunity" that could substantially benefit the company over the coming years and lift overall revenue by more than $4 billion annually, according to the brokerage. Wedbush expects Salesforce ( CRM ) Chief Executive Marc Benioff to discuss more about the company's long-term AI strategy this week.

The brokerage maintained its outperform rating on Salesforce's ( CRM ) stock and $375 price target.

"We believe (Salesforce ( CRM )) will be a clear second derivative beneficiary of the AI revolution that could add (approximately) $40 per share to the (Salesforce ( CRM )) story as this monetization story takes shape over the next 12 to 18 months with Benioff (and company) leading the charge and this new era of AI growth ahead," according to Ives.