Salesforce stock target cut to $300 by Loop Capital

On Thursday, Loop Capital Markets adjusted its price target for Salesforce.com (NYSE:CRM) shares, bringing it down from $330.00 to $300.00, while maintaining a Hold rating on the stock. According to InvestingPro data, Salesforce currently trades at a P/E ratio of ~50 and shows signs of being undervalued based on its Fair Value analysis. Notably, the company maintains a perfect Piotroski Score of 9, indicating strong financial health. The firm’s analyst, Yun Kim, cited Salesforce’s fourth-quarter Current Remaining Performance Obligations (CRPO) growth, which was approximately 11% year-over-year in constant currency, surpassing its own guidance of 9.4%. This growth was significantly driven by strong early renewals.

Despite the better-than-expected CRPO growth, Salesforce’s forward-looking guidance appeared less impressive. The company’s forecast for FY26 subscription revenue growth is 9% in constant currency, which is a slight decrease from the 10% growth observed in FY25. InvestingPro data reveals that Salesforce maintains impressive gross profit margins of nearly 77% and has demonstrated strong revenue growth with a 5-year CAGR of 21%. For investors seeking deeper insights, InvestingPro offers 12 additional key tips about Salesforce’s performance and potential. Kim highlighted that the current valuation of Salesforce’s stock is less connected to its present operations and more focused on the future potential of its Agentforce platform.

Salesforce disclosed that its Agentforce and Data Cloud offerings have collectively exceeded $900 million in Annual Recurring Revenue (ARR). However, Agentforce is not expected to contribute substantially to earnings until FY27. Consequently, Kim anticipates that Salesforce’s overall CRPO growth rate will likely hover around the current 10% year-over-year range for much of the year.

The analyst also noted the significance of industry cloud solutions in Salesforce’s business strategy. These solutions featured prominently in the company’s top 10 deals and constituted 75% of its top 100 deals. This reflects Salesforce’s verticalized go-to-market approach and solution packaging, which is expected to be mirrored in its go-to-market strategy for Agentforce.

Furthermore, Salesforce is increasingly relying on its partnerships, especially with large Global System Integrators (GSIs), to promote Agentforce. This partnership strategy is leading to a decline in its professional services business this year. Loop Capital will continue to observe Salesforce’s engagement with GSI partners over the coming quarters to assess progress with the Agentforce business and its related Data Cloud. With an overall Financial Health score of "GOOD" from InvestingPro, and analyst consensus maintaining a "Buy" recommendation, Salesforce appears well-positioned to execute its strategic initiatives. Discover comprehensive analysis and detailed metrics in the exclusive Pro Research Report, available to InvestingPro subscribers.

In other recent news, Salesforce reported its fourth-quarter earnings for 2025, exceeding expectations with an earnings per share (EPS) of $2.78, surpassing the forecasted $2.61. However, the company’s revenue came in at $10 billion, falling short of the anticipated $10.4 billion. Despite the revenue miss, Salesforce’s full-year revenue grew by 9% year-over-year, reaching $37.9 billion. The company also launched AgentForce, an AI-powered platform, which has been well-received and contributed to their innovative growth.

In analyst updates, Canaccord Genuity revised its price target for Salesforce from $415 to $400, maintaining a Buy rating, citing the company’s potential for growth and value. Raymond (NSE:RYMD) James also adjusted Salesforce’s price target to $375 from $425, while keeping a Strong Buy rating, highlighting the company’s strong bookings and the successful integration of AI. Both firms express confidence in Salesforce’s long-term potential despite a lowered growth outlook for fiscal year 2026.

These developments reflect Salesforce’s ongoing efforts to maintain its market leadership and adapt to current market conditions.

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