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Investing.com - Citizens maintained its Market Outperform rating on salesforce.com (NYSE:CRM) with a price target of $430.00 on Friday. According to InvestingPro data, this target represents significant upside potential from the current price of $246, with analysts’ consensus remaining strongly bullish at 1.64 (Strong Buy).
The firm cited Salesforce’s work on delivering the "agentic enterprise" across 17 industries as a key factor in its positive outlook, despite the company experiencing three years of negative net new annual order value. The company’s strong market position is reflected in its perfect Piotroski Score of 9, as reported by InvestingPro, which indicates excellent financial strength and operational efficiency.
Citizens highlighted Salesforce’s Data 360 and AI annual recurring revenue (ARR), which reached $1.2 billion in the second fiscal quarter with 120% growth. Within that segment, Agentic AI ARR was $440 million, representing 400% year-over-year growth.
The firm noted Salesforce addresses a substantial total addressable market, with the digital labor opportunity estimated at $13 trillion over the next five years. IDC projects the agentic growth opportunity to increase from $126 billion in fiscal year 2026 to $628 billion in fiscal year 2030.
Citizens also pointed to Salesforce’s financial performance, achieving "rule of 40" with 10% growth and a 34% non-GAAP operating margin in the second fiscal quarter, while targeting "rule of 50" by fiscal year 2030. The firm considers the stock’s valuation "quite reasonable" at 6.5 times calendar year 2026 enterprise value to revenue. This is supported by impressive gross profit margins of 77.65% and strong free cash flow yield of 5%, according to InvestingPro data, which offers 6 additional key insights about Salesforce’s valuation and growth prospects in its comprehensive Pro Research Report.
In other recent news, Salesforce has been the focus of several analyst reviews following its Dreamforce event and Investor Day in San Francisco. Goldman Sachs reiterated its Buy rating with a price target of $385, highlighting Salesforce’s long-term guidance targeting over $60 billion in revenue by fiscal 2030, with an expected compound annual growth rate of approximately 10% and operating margins reaching about 40%. Meanwhile, Cantor Fitzgerald maintained an Overweight rating and a $325 price target, emphasizing the company’s strategic positioning in enterprise AI, particularly with the launch of Agentforce 360. UBS and DA Davidson both maintained their Neutral ratings with price targets of $260 and $225, respectively, after attending the company’s events. UBS described the Investor Day as a "net positive," while DA Davidson noted updates on innovation acceleration and new long-term financial targets. Guggenheim also maintained a Neutral rating but expressed skepticism regarding the fiscal year 2030 revenue target, which requires a 10%+ organic revenue growth CAGR from FY26 to FY30. These developments reflect the varied perspectives from analysts on Salesforce’s growth and strategic initiatives.
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