Salesforce stock price target maintained at $325 by BofA on margin outlook

Published 16/10/2025, 10:48
Salesforce stock price target maintained at $325 by BofA on margin outlook

Investing.com - BofA Securities has reiterated its Buy rating and $325 price target on Salesforce.com (NYSE:CRM) following the company’s analyst day at the Dreamforce conference in San Francisco. According to InvestingPro analysis, Salesforce appears undervalued at its current price of $236.58, with the company achieving a perfect Piotroski Score of 9, indicating strong financial health.

The firm noted that Salesforce’s topline growth target of 10%+ CAGR through FY30 aligned with market expectations, while the company’s "rule of 50" target implies margins of approximately 40%, suggesting 150 basis points of annual expansion that exceeds current forecasts. This ambitious target builds upon the company’s already impressive gross profit margin of 77.65%. InvestingPro subscribers can access 8 additional key financial metrics and insights about Salesforce’s growth trajectory.

BofA highlighted that discussions with more than 10 partners indicated stable to improving demand for Sales and Service Clouds, with gradual pipeline builds for Agentforce, describing new product developments as "incremental, but important steps in building a robust platform for running agents across the Salesforce stack."

Based on the improved growth and margin targets, BofA raised its FY27E and FY28E free cash flow estimates to $16.2 billion (up 2.5%) and $18.5 billion (up 3.7%), respectively.

The firm maintained its $325 price objective, now based on a 19.1x multiple on calendar 2026 estimated free cash flow, reduced from 20x previously to reflect peer multiple compression.

In other recent news, Salesforce has been the focus of several analyst reviews following its Dreamforce conference and Analyst Day. Wolfe Research reiterated its Outperform rating with a $310 price target, expressing confidence in Salesforce’s potential to achieve double-digit organic growth, aiming for over $60 billion in revenue by fiscal year 2030. Similarly, Needham maintained a Buy rating and a $400 price target, noting significant investments in Salesforce applications by large language model vendors over the past year. Stifel also reiterated a Buy rating with a $300 price target, highlighting the introduction of Agentforce 360, which enhances Salesforce’s agentic capabilities. Raymond James supported a Strong Buy rating with a $375 price target, emphasizing Salesforce’s address of AI dynamics and growth metrics during the conference. Meanwhile, RBC Capital maintained a Sector Perform rating and a $250 price target, mentioning Salesforce’s transition from Customer 360 to Agentforce 360 with a focus on AI agents and contextual data. These developments reflect Salesforce’s strategic focus on AI and growth, as highlighted by various analyst firms.

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