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On Thursday, CFRA analyst Angelo Zino reiterated a Strong Buy rating and a $375.00 price target on Salesforce.com (NYSE:CRM), a company currently valued at nearly $250 billion. According to InvestingPro data, the stock appears undervalued based on its proprietary Fair Value model. In his analysis, Zino emphasized Salesforce’s potential to meet or exceed revenue expectations in upcoming quarters, citing a 13% growth in remaining performance obligations to $60.9 billion and a 12% increase in current bookings to $29.6 billion. These figures, he suggests, indicate an improving bookings situation that could bolster the company’s financial performance.
Zino’s valuation is based on a price-to-earnings (P/E) ratio of 30 times his calendar year 2026 earnings per share (EPS) forecast of $12.50. This projection is above the average for Salesforce’s peers but remains significantly below its historical three-year and five-year P/E averages of approximately 28 and 42 times, respectively. InvestingPro analysis shows the company maintains a strong financial health score of GOOD, with particularly robust metrics in growth and profitability. The analyst’s decision to maintain the target price reflects investor concerns about the impact of artificial intelligence on Salesforce’s core subscription business.
Furthermore, Zino has raised his EPS estimate for fiscal year 2026, ending in January, to $11.30, up from $11.10. For fiscal year 2027, the estimate has been increased to $12.58 from $12.50. Salesforce’s performance for the April quarter was reported to be largely in line with expectations, with annual revenue reaching $38.59 billion and maintaining impressive gross profit margins of 77.34%. Any forward-looking upside was attributed to a more favorable currency environment due to a weaker dollar.Investors seeking deeper insights can access Salesforce’s comprehensive Pro Research Report, along with 10 additional ProTips and extensive financial metrics, through InvestingPro.
The analyst also noted that the improvement in bookings was a highlight of Salesforce’s recent performance. He believes that the combination of improved bookings, stabilization in revenue growth, and positive traction from Salesforce’s Agentforce/Data Cloud products creates an attractive investment opportunity, especially when considering the current valuation of the company’s shares at 22 times Zino’s calendar year 2026 EPS view.
In other recent news, Salesforce reported solid first-quarter results, with revenue and committed remaining performance obligations (cRPO) growth slightly exceeding estimates by 1%, as noted by TD Cowen. The company’s non-GAAP earnings per share (EPS) for the quarter were $2.58, surpassing consensus by $0.03, according to FBN Securities. Despite these strong figures, Citi analyst Tyler Radke maintained a Neutral rating, lowering the price target to $295, citing concerns over a deceleration in growth and profitability improvements.
Salesforce’s Data Cloud and AI annual recurring revenue demonstrated robust growth, with TD Cowen highlighting a 120% year-over-year increase. FBN Securities emphasized the company’s strong performance in the Platform/Other Cloud and Integration and Analytics Cloud segments, with revenue growth of 14% and 10% year-over-year, respectively. Meanwhile, BMO Capital Markets maintained an Outperform rating with a $350 price target, acknowledging satisfactory results amid modest expectations.
Northland analysts reduced their price target to $396, maintaining an Outperform rating, while expressing slight concerns over the Informatica acquisition. Despite this, they noted positive indicators, including a 22% increase in distribution capacity by fiscal year 2026. Overall, Salesforce’s strategic focus on growth initiatives and emerging technologies like AI is seen positively by several analyst firms, suggesting a continued optimistic outlook.
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