Salesforce (CRM) chalked up a win after well-respected activist investor Elliott Management scrapped its nomination candidates for the Club holding’s board. Meanwhile, analysts who cover Caterpillar (CAT) put out fresh research that cuts against our own thinking, and layoffs will soon begin at Disney (DIS). Here’s a rundown of the news and our Club take on each development. Elliott retreats on board battle CRM 1Y mountain Salesforce’s 12-month stock performance. The news: Elliott Management on Monday withdrew its slate of director nominations for Salesforce’s board, reversing course after CEO Marc Benioff revealed plans to accelerate the enterprise software maker’s profitability growth and delivered strong full-year guidance earlier this month . In a joint statement with Salesforce, Elliott managing partner Jesse Cohn said he’s “deeply impressed” with the company’s plans to deliver profitable growth and responsibly return capital to shareholders through stock buybacks. Benioff said he appreciated Cohn’s “mindful and constructive ideas.” The Salesforce co-founder echoed the we-can-learn-from-everybody philosophy he laid out on March 1 in an interview with Jim Cramer. Elliott is one of the five activist investors to build a position in Salesforce in recent months, pushing the company to close its profitability gap with its mature software peers. The Club’s take: Elliott’s peace agreement is another sign Benioff is winning this activist tussle with an ambitious multi-year strategy to expand margins while growing revenues. The company more than delivered with its fiscal 2023 fourth-quarter results March 1 and its fiscal 2024 guidance of 27% adjusted operating margin, well ahead of Wall Street’s expectations. Against this backdrop, it’s not entirely shocking that Elliott has pulled its nominations and both sides are striking a congenial tone. Salesforce shares, which rose modestly Monday, has surged more than 44% this year, the third-best performing Club stock…
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