The past year has been a thrill ride for investors in Salesforce (CRM 0.42%). After losing more than half its market value during the economic downturn, the customer relationship management (CRM) specialist has come roaring back, soaring 81% over the past year alone.

However, one analyst believes the company's business momentum will continue to accelerate, driving the stock to new all-time highs.

The recovery is gaining momentum

Jefferies analyst Brent Thill raised his price target on Salesforce stock to $350, up from $325, while maintaining a buy rating on the shares, according to The Fly. In a survey to assess the business landscape, the investment firm noted a "modest improvement in demand." Channel checks seem to backstop this view, suggesting that both technology and manufacturing are recovering, while noting strength in the public sector.

As a result of the firm's research, Thill concludes that Salesforce's current remaining performance obligation (CRPO) -- or contractually obligated sales that will be recognized as revenue over the coming 12 months -- will exceed the 10% growth estimate included in management's forecast. The analyst further believes Salesforce will generate double-digit year-over-year growth in its software-as-a-service (SaaS) business in 2025.

Not going out on a limb

The analyst really isn't going out on a limb here. For the first three quarters of fiscal 2024, Salesforce generated revenue that grew 11% year over year. Additionally, management has a history of issuing conservative guidance, which the company has been able to meet or exceed in each of the three prior quarters.

Furthermore, analysts' consensus estimates are calling for full fiscal 2024 revenue of $34.8 billion or 11% growth, in line with management's forecast. As the economic recovery and business spending continue to rebound, Salesforce should be able to capitalize on the recovery, with additional upside to its revenue growth over the coming year.

This comes ahead of the company's fiscal 2024 fourth-quarter financial release after market close on Feb. 28.

With all that as a backdrop, I suspect the analyst's price target might end up being conservative.