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On Thursday, Stifel analysts maintained their Buy rating and $375.00 price target for Salesforce.com (NYSE:CRM) shares, representing significant upside potential from the current price of $282.28. The software giant, with a market capitalization of $270.8 billion and a "GREAT" financial health score according to InvestingPro, continues its Agentforce World Tour, with its latest event taking place in New York City. The tour, which has been showcasing Salesforce’s product updates and roadmaps, is seen as a significant moment due to the expected high turnout and potential updates to the Agentforce platform.
The analysts noted that the recent pricing updates, which were announced last week, are likely to address some customer concerns. This change is anticipated to encourage customers to move from testing the product in Proof of Concepts to actual deployments. With impressive gross profit margins of 77.19% and annual revenue of $37.9 billion, Salesforce demonstrates strong operational efficiency in its core business. Stifel’s focus on the event was particularly on the deep dive into Agentforce for Regulated Industries, specifically targeting the Financial Services and Healthcare & Life Sciences sectors.
The commentary from Stifel came after they previewed Salesforce’s first quarter of fiscal year 2026, where they highlighted the importance of product updates and discussions with partners. These discussions mainly revolved around Agentforce and Data Cloud, two key components of Salesforce’s offerings.
Salesforce’s commitment to enhancing its services for regulated industries was evident at the NYC event. The company’s focus on providing tailored solutions for sectors with stringent regulations showcases its strategy to meet specific industry needs. This approach potentially positions Salesforce favorably in the market, as it caters to niche areas that require specialized attention.
The reiterated Buy rating and price target reflect Stifel’s confidence in Salesforce’s strategy and product offerings. With the ongoing Agentforce World Tour and the recent pricing updates, Salesforce appears to be strengthening its position to drive further adoption of its services in the near future. Trading at a P/E ratio of 43.86, InvestingPro analysis suggests the stock is currently undervalued, with analysts maintaining a strong buy consensus. For deeper insights into Salesforce’s valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Salesforce has announced a strategic partnership with the U.S. General Services Administration (GSA) to offer Slack at significantly reduced prices for federal agencies, aiming to enhance government productivity. The agreement includes a temporary 90% reduction on Slack Enterprise Grid and nearly 70% off on Slack AI for Enterprise until November 2025. In addition to this, Salesforce introduced a new flexible pricing model for its Agentforce platform, designed to meet the growing demand for AI and digital labor. This model includes innovations like ’Flex (NASDAQ:FLEX) Credits’ and ’Flex Agreements,’ providing organizations with strategic investment flexibility.
Meanwhile, analyst firms have maintained their positive outlook on Salesforce. JMP Securities reiterated its Market Outperform rating with a $430 price target, expressing confidence in Salesforce’s strategic decisions despite recent stock performance. Similarly, TD Cowen kept its Buy rating with a $375 target, highlighting strengths in Salesforce’s Data and AI offerings, although noting some commercial challenges. In other developments, Proof Mark, a Salesforce partner, issued governance concerns in an open letter, citing a lack of response to operational issues raised with Salesforce’s board. Proof Mark has set up a Substack microsite for transparency and ongoing updates on this matter.
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