Salesforce (CRM) is set to report its third quarter earnings after Tuesday's market close, with Piper Sandler equity research analyst, cloud software and analytics Brent Bracelin providing insights into what investors can anticipate.

Bracelin maintains an Overweight rating with a $395 price target on the stock. While he expects "more of the same" from Salesforce's report, he notes that the "narrative is shifting." He points to the growing use of AI agents, which Bracelin believes "could really be a catalyst that could kickstart growth for the company" in the long term.

"But remember we're coming from a point where people were negative on Salesforce for the last two years," Bracelin states. He highlights a key risk: the potential for the company to guide its fourth quarter backlog to 8% growth, which falls short of Wall Street's 9% expectation.

Bracelin sees a "silver lining from a financial perspective" in the company's free cash flow despite these challenges.

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This post was written by Angel Smith