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On Monday, Truist Securities expressed a positive outlook on Salesforce.com (NYSE:CRM) shares, maintaining a Buy rating and a $400.00 price target. This aligns with the broader Wall Street sentiment, as InvestingPro data shows a strong analyst consensus recommendation of 1.74 (where 1 is Strong Buy), with price targets ranging from $243 to $442. Truist’s analyst highlighted several growth drivers that could potentially revitalize the company’s growth trajectory through the fiscal year 2026 (FY26), with expectations of stronger growth in the second half of the fiscal year. The analyst’s optimism is further extended into fiscal year 2027 (FY27), where the potential for growth acceleration appears more pronounced. According to InvestingPro data, Salesforce has demonstrated solid fundamentals with impressive gross profit margins of 77.19% and revenue growth of 8.72% over the last twelve months.
Salesforce’s diverse portfolio, including Data Cloud and AI/Agentforce, as well as improvements in other segments such as Marketing Cloud, were identified as key factors that could contribute to the company’s growth revitalization. The analyst’s commentary suggests that these elements could serve as catalysts for Salesforce’s performance in the coming years.
The firm’s confidence in Salesforce is also rooted in what they consider a relatively de-risked and macro-adjusted revenue guidance. Truist’s analysis indicates that Salesforce’s enterprise value to the calendar year 2026 estimated free cash flow (EV/CY26E FCF) multiple stands at 17.5x, which supports the valuation case for the company. Based on InvestingPro’s comprehensive Fair Value analysis, Salesforce currently appears to be trading below its Fair Value, presenting a potential opportunity for investors. The company’s PEG ratio of 0.85 suggests attractive pricing relative to its growth prospects.
In addition to growth and valuation factors, the analyst underscored Salesforce’s capital allocation strategy, which is supported by a strong balance sheet. This financial stability is seen as a positive sign for the company’s ability to manage its resources effectively and invest in areas that can drive further growth. InvestingPro data confirms this strength with a moderate debt-to-equity ratio of 0.2 and a healthy Altman Z-Score of 5.74, indicating strong financial health.
Overall, Truist Securities’ reiteration of the Buy rating reflects a belief in Salesforce’s ability to navigate the macroeconomic environment and emerge with stronger growth prospects, backed by solid financials and strategic investments in its product offerings.
In other recent news, Salesforce has issued equity awards to 218 new employees from its acquisitions of Own Company and Zoomin. These awards, totaling 95,777 restricted stock units, are part of Salesforce’s strategy to integrate new talent and encourage long-term commitment. Meanwhile, TD Cowen analysts have reaffirmed a Buy rating on Salesforce, maintaining a $375 price target, following a stronger-than-expected fourth-quarter performance. BMO Capital Markets, while slightly lowering its price target to $367, continues to hold an Outperform rating, noting solid performance in calculated billings and free cash flow.
Truist Securities has maintained a Buy rating with a $400 target, highlighting Salesforce’s robust fourth-quarter results, including significant growth in Data Cloud and AI revenue. Despite a conservative revenue outlook, Truist suggests buying the stock on weakness. Piper Sandler has also adjusted its price target to $400, keeping an Overweight rating, viewing the revised growth forecast as a beneficial reset for Salesforce’s new COO/CFO. The firm anticipates potential upside through AI monetization and multi-cloud opportunities, underscoring confidence in Salesforce’s ability to sustain double-digit free cash flow growth. These developments reflect a range of analyst perspectives on Salesforce’s current and future market position.
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