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Investing.com - JPMorgan has lowered its price target on salesforce.com (NYSE:CRM) to $365.00 from $380.00 while maintaining an Overweight rating on the stock. The $245 billion market cap company maintains impressive gross profit margins of 77.3% and boasts a GREAT Financial Health score according to InvestingPro data.
The adjustment follows Salesforce’s fiscal second-quarter results, which JPMorgan notes exceeded expectations on revenue and current remaining performance obligation (cRPO) metrics. The company maintained its fiscal year 2026 revenue outlook while raising guidance for operating cash flow and free cash flow. With annual revenue reaching $38.59 billion, Salesforce continues to demonstrate strong market presence.
JPMorgan highlights positive momentum across Salesforce’s artificial intelligence solutions, including Agentforce, and notes the company’s recent Genesys investment. The firm’s quarterly Salesforce partner survey indicated consistent growth runway in the mid to high single digits.
The research firm suggests that market concerns about AI’s potential impact on seat-based SaaS models may be overdone, pointing out that CRM shares are trading near historically low valuation levels and at a deep discount compared to software peers.
Despite the price target reduction, JPMorgan maintains its Overweight rating, indicating the firm’s view that Salesforce’s positive commentary and performance metrics justify a favorable outlook despite growth not yet showing significant acceleration.
In other recent news, Salesforce reported a 9% revenue growth and a 10% increase in current remaining performance obligation (cRPO) for the second quarter. The company’s non-GAAP operating margins stood at 34.3%, showing about 60 basis points of operating leverage. Despite these results, Bernstein lowered its price target for Salesforce to $221, citing soft guidance that only met the top end of consensus estimates. Canaccord Genuity also adjusted its price target down to $300, maintaining a Buy rating due to steady growth. UBS reiterated its Neutral rating with a $260 price target, noting that the results were in line with expectations. Barclays kept its Overweight rating with a $316 price target, highlighting a disconnect between increased sales capacity and actual growth acceleration. Meanwhile, KeyBanc reduced its price target to $400, attributing this to negative sentiment in the application software sector affecting Salesforce’s shares. These developments reflect a range of analyst perspectives on Salesforce’s recent performance and future outlook.
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