Cantor Fitzgerald reiterates Overweight rating on Salesforce stock

Investing.com - Cantor Fitzgerald maintained its Overweight rating on salesforce.com (NYSE:CRM) with a price target of $325.00 on Wednesday, suggesting 33% upside from the current price of $244.50.

The research firm expressed confidence in Salesforce’s strong position within enterprise environments, which it believes will drive sustainable growth and free cash flow generation over the long term. This view aligns with Salesforce’s impressive 77.65% gross profit margin and substantial $12.5 billion in free cash flow over the last twelve months.

Cantor Fitzgerald noted that concerns about potential AI-related disruption have created what it views as an attractive risk/reward opportunity for investors with longer time horizons. InvestingPro data shows Salesforce has a perfect Piotroski Score of 9, indicating strong financial health despite recent market concerns.

The firm highlighted that Salesforce is currently trading at approximately 16 times its price to next-twelve-months free cash flow, which represents near all-time low multiples for the company. Currently, Salesforce trades at a P/E ratio of 35.62, with analysts setting price targets ranging from $221 to $430.

Cantor Fitzgerald suggested that a multiple of 20-25 times would be more appropriate given the quality of Salesforce’s business and its potential for free cash flow growth and margin expansion. According to InvestingPro’s Fair Value assessment, Salesforce appears undervalued at current levels, with additional ProTips available for subscribers seeking deeper insights.

In other recent news, Salesforce has garnered significant attention from analysts following its Analyst Day at the Dreamforce event. TD Cowen reiterated its Buy rating on Salesforce, setting a price target of $335, highlighting the company’s strong position in enterprise software amid AI disruption concerns. BMO Capital maintained its Outperform rating with a $280 target, expressing optimism about Salesforce’s potential growth and margin improvements despite current negative investor sentiment. Citizens also upheld its Market Outperform rating with a $430 price target, citing Salesforce’s efforts in delivering the "agentic enterprise" across various industries. Meanwhile, UBS kept its Neutral rating and a $260 target after attending the Investor Day, calling it a "net positive" for Salesforce. These developments suggest a cautious yet optimistic outlook from analysts regarding Salesforce’s future prospects.

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