What happened

Shares of Salesforce.com (CRM 0.33%) climbed on Wednesday following positive analyst commentary. As of noon EDT, the software leader's stock was up more than 3%.

So what 

JMP Securities analyst Patrick Walravens reiterated his outperform rating on Salesforce stock and boosted his price forecast from $282 to $320. If he's correct, investors could be in store for gains of roughly 25%.

A miniature gold bull is on top of a keyboard button labeled buy.

Image source: Getty Images.

Walravens said his channel checks suggest Salesforce is winning business at an impressive clip. His new price target is based on 9.3 times his projected revenue in fiscal 2022, which he notes is less than the median price-to-sales ratio of other software-as-a-service stocks. 

Now what

Salesforce is a key beneficiary of the digital transformation megatrend. Companies are migrating their operations to the cloud at an accelerated pace during the COVID-19 crisis, to better support distributed and often home-based workforces. Salesforce's cloud-based software and best-in-class data integration services are helping to enable this trend. Business, in turn, is booming. 

Investors can expect to receive an update on revenue and earnings growth when the company reports its second-quarter financial results on Aug. 25 after the market close.