Truist maintains Buy on Salesforce shares with $400 target

Published 29/05/2025, 11:10
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On Thursday, Truist Securities maintained a positive stance on Salesforce.com (NYSE:CRM), with analyst Terry Tillman reiterating a Buy rating and a price target of $400.00. According to InvestingPro data, Salesforce currently trades at $276.03, with analysts’ targets ranging from $200 to $442, suggesting significant potential upside. The company’s current market capitalization stands at approximately $265 billion. The endorsement came after Salesforce reported first-quarter results that surpassed expectations, particularly in subscription and support revenue, total revenue, and current remaining performance obligations (cRPO), which showed an 11% year-over-year growth on a constant currency basis, compared to the estimated 10%.

Tillman highlighted several key points from Salesforce’s report, noting resilient demand and encouraging developments in the high-growth segments of Data Cloud and AI. Salesforce’s performance in the small and mid-market business segment was notably robust, experiencing mid to high teens growth and comprising close to 50% of the total business. InvestingPro analysis reveals impressive fundamentals, with a gross profit margin of 77.19% and revenue of $37.9 billion in the last twelve months. Get access to 8 more exclusive ProTips and comprehensive financial metrics with InvestingPro. Moreover, the Data Cloud and AI segment saw its annual recurring revenue (ARR) more than double, reaching over $1 billion. Another achievement for Salesforce was the Agentforce product hitting an annual order value (AOV) of $100 million, while the multi-cloud business continued to show strength.

Based on these results, Truist Securities is raising its estimates on a constant currency basis for Salesforce. Tillman expressed increased confidence in the company’s growth prospects, citing a combination of applications, data, agents, and metadata, as well as expectations of over 20% growth in sales distribution. This optimism is supported by InvestingPro data showing a 5-year revenue CAGR of 17% and strong financial health metrics, with an overall score of "GOOD." Discover detailed growth projections and expert analysis in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. This combination, according to Tillman, supports a positive outlook for Salesforce’s growth trajectory, consistent margin improvement, and cash flow expansion. The Buy rating and $400 price target have been reiterated to reflect these sentiments.

In other recent news, Salesforce has announced impressive financial results for the first quarter of fiscal year 2026, with revenue reaching $9.83 billion, marking a 7.6% year-over-year increase. The company’s earnings per share (EPS) also surpassed expectations, with a pro forma EPS of $2.58. Analysts have responded to these developments with mixed adjustments to Salesforce’s stock price targets. Morgan Stanley (NYSE:MS) raised its target to $404, citing strong Cloud Revenue Performance Obligation growth, while Goldman Sachs increased its target to $385, highlighting the company’s robust AI and Data Cloud segments. Meanwhile, Baird reduced its price target to $365 but maintained an Outperform rating, pointing to Salesforce’s steady subscription revenue growth and potential in newer ventures like Data Cloud and Agentforce.

Salesforce’s recent acquisition of Informatica is also drawing attention, with JPMorgan emphasizing its strategic importance in enhancing AI capabilities. The company has revised its fiscal year 2026 revenue forecast upward, partly due to favorable foreign exchange rates. Stifel analysts reiterated a Buy rating, noting Salesforce’s optimistic market positioning and strategic expansion plans. Overall, Salesforce’s recent performance and strategic initiatives continue to attract interest from analysts and investors alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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