Trump announces trade deal with EU following months of negotiations
On Thursday, Northland analysts adjusted their outlook on Salesforce.com, Inc. (NYSE:CRM) shares, reducing the price target from $423.00 to $396.00. Despite the decrease, they maintained an Outperform rating on the company’s stock. Currently trading at $259.26, Salesforce maintains a "GOOD" financial health score according to InvestingPro analysis, with the stock appearing undervalued based on comprehensive Fair Value calculations.
The revision of the price target was attributed to a slight concern over the impact of Salesforce’s acquisition of Informatica (INFA). However, the analysts emphasized that this concern was not significant enough to overshadow the positive indicators they observed. They noted that the company’s current remaining performance obligations (cRPO) had beaten expectations, partly due to favorable foreign exchange tailwinds. The company’s impressive 77.19% gross profit margin supports its strong market position, as revealed in InvestingPro’s detailed analysis.
The analysts also pointed to an implied professional services raise and a 22% increase in distribution capacity by the end of the fiscal year 2026 as key factors that suggest strong potential for revenue growth. Furthermore, they highlighted the traction of Agentforce, Salesforce’s product aimed at enhancing productivity for sales agents, as a contributing factor to their optimistic outlook.
Despite the lower price target, the reiteration of the Outperform rating indicates that Northland analysts still see Salesforce as a favorable investment. They believe the company’s strategic moves and market position will continue to drive growth, outweighing any minor concerns raised by the recent acquisition.
In other recent news, Salesforce has reported strong financial results for its first quarter, surpassing analyst expectations and achieving significant growth in key areas. The company saw a 12.1% year-over-year increase in current remaining performance obligations (cRPO), outperforming both its own guidance and analyst projections. This robust performance has led Needham analysts to maintain a Buy rating with a $400 price target, despite slight challenges in operating margins due to increased research and development costs.
Salesforce’s acquisition of Informatica has been a focal point, with analysts from Raymond (NSE:RYMD) James and Bernstein SocGen Group noting its strategic importance. Raymond James maintains a Strong Buy rating with a $375 price target, citing the acquisition’s potential to enhance Salesforce’s position in data management. Meanwhile, Bernstein raised its price target to $255, although it retains an Underperform rating, highlighting challenges in the company’s Agentic AI initiative.
Piper Sandler also adjusted its price target for Salesforce, increasing it to $335 and maintaining an Overweight rating, supported by Salesforce’s recent growth and strategic acquisitions. Oppenheimer, while reducing its price target to $370, continues to hold an Outperform rating, reflecting optimism about Salesforce’s future prospects despite a cautious macroeconomic environment. These developments underscore Salesforce’s dynamic performance and strategic maneuvers in the market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.