Salesforce (CRM) is in a slightly stronger "operating environment" in Q4 with stock valuation at reasonable levels, given its growth prospects and cash generation, Oppenheimer said in an earnings preview Friday.

The cloud-based software company is expected to deliver positive Q4 results that should "exceed a low bar" and constructive updates on Agentforce, although guidance may fall short of some investors' estimates, Oppenheimer said. The company is due to report Q4 results on Wednesday.

Oppenheimer analysts said they project revenue of about $10 billion for Q4 and predict $2.60 in earnings per share for the quarter.

Investor sentiment on Salesforce turned more cautious this year due to a sales leadership transition that may affect the company's go-to-market approach in 2025, as well as the uncertain timing of revenue from Agentforce, the investment firm said.

The upcoming departure of Salesforce's president and COO was unexpected, raising worries about possible sales restructuring challenges through 2025, according to the note.

Salesforce can regain investor confidence by delivering above-consensus results, offering clear updates on Agentforce and Data Cloud, setting new medium-term financial targets, and benefiting from a possible IT spending recovery, Oppenheimer analysts said.

Oppenheimer maintained an outperform rating and $415 price target on Salesforce.

Price: 316.26, Change: -2.17, Percent Change: -0.68