Guggenheim maintains Neutral rating on Salesforce stock after Dreamforce

Investing.com - Guggenheim has reiterated its Neutral rating on Salesforce.com (NYSE:CRM), currently valued at $225 billion with a perfect Piotroski Score of 9, following the company’s Dreamforce conference and Investor Day events. According to InvestingPro analysis, the stock appears to be trading below its Fair Value.

The research firm expressed skepticism about Salesforce’s newly introduced fiscal year 2030 revenue target of $60 billion+, which would require a 10%+ organic revenue growth CAGR from FY26 to FY30, significantly higher than its current revenue growth rate of 8.33%.

Guggenheim noted that while the implied New Business growth needed to achieve this target appears achievable, the company’s track record with its previous long-term target of $50 billion+ by FY26 raises concerns.

The firm pointed out that much of Salesforce’s growth expectations depend on its ability to monetize Generative AI and Agentic AI, capabilities Guggenheim remains skeptical about for Salesforce and other application vendors.

Salesforce also introduced a "Rule of 50" target (combining revenue growth and non-GAAP operating margin) by FY30, implying a non-GAAP margin of approximately 40%, which Guggenheim believes the company can achieve.

In other recent news, Salesforce has been the focus of several analyst reviews following its investor and analyst day events. Oppenheimer reiterated an Outperform rating on Salesforce with a price target of $315, expressing confidence in the company’s medium-term guidance of a 10% compound annual growth rate (CAGR) and a 40% operating margin. KeyBanc also maintained its Overweight rating with a $400 price target, noting comments from Salesforce executives about anticipated growth acceleration. Canaccord Genuity upheld its Buy rating at a $300 price target, highlighting Salesforce’s "reimagined platform for the Agentic Enterprise" as a key factor in its positive outlook. BofA Securities kept its Buy rating with a $325 price target, citing Salesforce’s topline growth target of over 10% CAGR through fiscal year 2030 and a "rule of 50" target implying significant margin expansion. Wolfe Research also reiterated an Outperform rating, setting a $310 price target, and noted Salesforce’s confidence in achieving double-digit organic growth to reach over $60 billion in revenue by fiscal year 2030. These developments suggest a consistent positive outlook from analysts regarding Salesforce’s future performance.

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