Truist Securities maintains buy rating on Salesforce stock

On Monday, Truist Securities analysts reiterated their Buy rating and maintained a $400.00 price target on Salesforce stock (NYSE: NYSE:CRM). The decision follows the company’s first-quarter fiscal year 2026 results and a subsequent discussion with the company. According to InvestingPro data, analysts maintain a strong consensus on Salesforce, with price targets ranging from $225 to $442, while 33 analysts have recently revised their earnings estimates upward.

The analysts highlighted several key developments, including dynamics related to Salesforce’s Sales and Service Cloud, Agentforce, and slower growth in the Marketing & Commerce Cloud. They also noted the market’s underappreciation of operational leverage in Salesforce’s model and positive traction among small and mid-sized businesses.

Truist Securities expressed confidence in Salesforce’s potential to exceed fiscal year estimates. The analysts believe this sets the stage for improved growth, expanding profits, and cash flow, along with progress in the company’s capital allocation program.

The report emphasized Salesforce’s attractive risk/reward profile, with the stock trading at 17 times enterprise value to calendar year 2026 estimated free cash flow and 22 times non-GAAP earnings per share.

The analysts concluded that the first-quarter results reflected several constructive developments for Salesforce, reinforcing their positive outlook on the stock.

In other recent news, Salesforce’s financial performance and strategic moves have drawn mixed reactions from analysts. The company reported first-quarter results for fiscal year 2026, with an operating margin of 32.3%, slightly below expectations. Despite favorable currency movements increasing revenue guidance by $400 million, Salesforce maintained its FY26 margin guidance at 34%, prompting investor concerns about potential margin growth slowdowns. In response to these developments, Morgan Stanley (NYSE:MS) maintained an Overweight rating with a $404 price target, highlighting Salesforce’s commitment to margin improvement and growth investments.

Meanwhile, CFRA reiterated a Strong Buy rating and a $375 price target, citing a 13% growth in remaining performance obligations and a 12% increase in current bookings as indicators of potential revenue growth. Stifel also maintained a Buy rating with a $375 target, emphasizing the benefits of Salesforce’s impending acquisition of Informatica. This acquisition is expected to enhance Salesforce’s competitive edge in the Data and AI space.

However, not all analysts are equally optimistic. Stephens reduced its price target slightly to $309, maintaining an Equal Weight rating, while Citi cut its target to $295, citing concerns over Salesforce’s growth deceleration and profitability improvements. Despite these varied perspectives, Salesforce’s initiatives in AI and data management remain focal points for 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.