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Investing.com - CFRA has lowered its price target on salesforce.com (NYSE:CRM) to $300 from $375 while maintaining a Strong Buy rating on the stock. According to InvestingPro data, Salesforce commands a market capitalization of $232.31 billion and currently trades at a P/E ratio of 37.58, with analysis suggesting the stock is currently undervalued.
The research firm cited a price-to-earnings ratio of approximately 21.3 times its calendar year 2027 earnings per share estimate of $14.13, which represents a deep discount to historical averages.
CFRA raised its fiscal year 2026 earnings per share estimate to $11.35 from $11.30 following what it described as "solid" July quarter results, while maintaining its fiscal year 2027 estimate at $12.58 and initiating a fiscal year 2028 estimate at $14.13.
The firm noted that Salesforce’s Agentic AI offering showed a 60% sequential increase in customers moving from pilot to production, expanding use cases and scaling operations.
CFRA expressed confidence that Salesforce remains a potential winner amid software-as-a-service industry turmoil, highlighting that the company’s current valuation of approximately 17 times calendar year 2027 earnings per share is "highly enticing."
In other recent news, Salesforce reported strong second-quarter results, exceeding expectations in revenue and current remaining performance obligation (cRPO) metrics. The company maintained its fiscal year 2026 revenue outlook and increased guidance for operating cash flow and free cash flow. Despite this performance, several analyst firms adjusted their price targets for Salesforce. JPMorgan lowered its price target to $365, maintaining an Overweight rating, while Piper Sandler decreased its target to $315, citing non-recurring foreign exchange and licensing benefits. Wells Fargo also reduced its target to $265, highlighting slower-than-expected adoption of Salesforce’s AI offerings. RBC Capital adjusted its price target to $250, maintaining a Sector Perform rating, despite strong growth in Salesforce’s Data Cloud and AI offerings. Meanwhile, TD Cowen reiterated its Buy rating with a $335 price target, emphasizing confidence in Salesforce’s financial trajectory. These developments reflect a mixed outlook among analysts on Salesforce’s future performance.
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