Salesforce stock holds steady as RBC maintains Sector Perform rating

Published 15/10/2025, 10:34
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Investing.com - RBC Capital has reiterated its Sector Perform rating and $250.00 price target on salesforce.com (NYSE:CRM) following the analyst firm’s attendance at Dreamforce 2025 in San Francisco. The company, currently valued at $228 billion, maintains impressive gross profit margins of 78% and trades at a P/E ratio of 35.4. According to InvestingPro analysis, Salesforce currently appears undervalued relative to its Fair Value.

At the conference, Salesforce unveiled its evolution from Customer 360 to Agentforce 360, repositioning its platform with AI agents and contextual data as the core components.

The company is now presenting itself as the AI orchestration layer for enterprises, a strategic shift that moves Salesforce into territory currently occupied by ServiceNow (NYSE:NOW) in automation and workflow solutions.

RBC Capital noted that while Salesforce emphasized trust, governance, and extensibility in its narrative, competitive overlap between Salesforce and ServiceNow appears to be intensifying as both companies converge around workflow automation, data context, and AI agent deployment.

The maintained $250 price target implies a 15x multiple on RBC’s calendar year 2026 estimated free cash flow, consistent with Salesforce’s current trading multiple.

In other recent news, Salesforce announced its financial commitment to invest $15 billion in San Francisco over the next five years. This investment will support the establishment of a new AI Incubator Hub, workforce development initiatives, and aid in AI technology adoption. Additionally, Salesforce has partnered with Stripe and OpenAI to develop an Instant Checkout integration utilizing the new Agentic Commerce Protocol, aimed at enhancing AI-powered shopping experiences. Furthermore, Salesforce and OpenAI have expanded their partnership to integrate Salesforce’s Agentforce 360 platform into ChatGPT, allowing users to access Salesforce CRM data and build AI agents using OpenAI’s latest models. In a move to support regulated industries, Salesforce and Anthropic have expanded their collaboration to deliver AI solutions while maintaining data security. On the analyst front, Northland downgraded Salesforce’s stock rating from Outperform to Market Perform, citing a lack of expected acceleration in current Remaining Performance Obligation. These developments reflect Salesforce’s ongoing strategic initiatives and partnerships in the AI and technology sectors.

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