Shares of Salesforce.com Inc. (CRM) ended higher by 1.47% to $116.65 Monday after a bold call from Oppenheimer analyst Brian Schwartz.
Schwartz reiterated his outperform rating, but upped his price target to $135 from $125 ahead of the company's fiscal fourth-quarter earnings results set to be released on Wednesday, Feb. 28.
"It's a dangerous call to make unless it's a fantastic quarter," TheStreet's Jim Cramer said on CNBC's "Mad Dash" segment. The analyst didn't have to do this right before the company reports, but he's basically saying the quarter is going to be good and it could really move the stock higher.
A rally to $135 would represent more than 16% upside from current levels.
Cloud computing remains a robust business that still appears to be in the early innings, noted Cramer, who also manages the Action Alerts PLUS charitable trust portfolio. He also pointed out the strong earnings results from companies like Hewlett Packard Enterprise (HPE) and Cisco Systems (CSCO) .
But Salesforce is one of the more prominent names in the industry and it's a stock that's been benefiting from recent excitement over cloud computing. Amazon (AMZN) and Microsoft (MSFT) have also seen gains thanks to excitement over their cloud businesses as well.
If Salesforce CEO Marc Benioff can deliver, this stock could breakout, Cramer concluded.