Salesforce (CRM)
Analyst Updates
Salesforce (CRM) recently received a series of price target reductions from major analysts, signaling a recalibration of valuation expectations amid evolving growth dynamics in the enterprise software sector:
BMO Capital Markets lowered its price target on Salesforce (CRM) to $235 from $275 while maintaining an Outperform rating.
Citigroup lowered its 12 month price target to $197 from $257 and maintained a Neutral rating.
BTIG Research lowered its 12 month price target to $260 from $335, and maintained the “Buy” rating.
Mizuho Securities reduced its 12 month price target to $280 from $340 and maintained an “Outperform” rating.
Oppenheimer also trimmed its 12 month price target to $275 from $300, reiterating its “Outperform” stance.
Wells Fargo reduced its 12 month price target to $235 from $265 and reiterated an Equal Weight rating
The downward revisions reflect moderating revenue growth expectations as Salesforce transitions from a high-growth phase to a more mature, margin-focused operating model. Investors have increasingly scrutinized large-cap software valuations, particularly in light of macroeconomic uncertainty, enterprise IT budget discipline, and rising competition in cloud-based CRM and AI-enabled productivity platforms. Additionally, multiple compression across the broader software sector may have influenced the target adjustments, even as the company continues to deliver steady cash flow and operational efficiency improvements.
Despite the lower targets, the continued positive ratings suggest analysts remain positive on Salesforce’s strategic positioning. The company’s expanding ecosystem, including AI-driven enhancements through its Einstein platform, integration of acquisitions such as Slack, and deep enterprise relationships, supports long-term revenue durability. Furthermore, Salesforce’s ongoing emphasis on cost control, margin expansion, and shareholder returns through buybacks reinforces confidence in its profitability trajectory.
Overall, while analysts have moderated their valuation assumptions to align with a more normalized growth environment, sentiment toward Salesforce’s competitive moat, recurring revenue model, and free cash flow generation remains broadly positive.
STA Research (StockTargetAdvisor.com) is a independent Investment Research company that specializes in stock forecasting and analysis with integrated AI, based on our platform stocktargetadvisor.com, EST 2007.
