Key Stats for Salesforce Stock
- Price change for Salesforce stock in last 6 months: 38%
- $CRM Share Price as of Jun. 30: $157
- 52-Week High: $277
- $CRM Stock Price Target: $247
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What Happened?
Salesforce (CRM) stock got a notable boost on Wednesday after Guggenheim upgraded shares to Buy from Neutral, setting a price target of $228. That implies roughly 46% upside from current levels.
The upgrade comes after Salesforce stock has fallen nearly 38% year-to-date, largely driven by fears that agentic AI will disrupt the traditional SaaS business model, a narrative some have dubbed the “SaaSpocalypse.”
Guggenheim’s call is not that Salesforce will be a major AI winner. Rather, the firm argues that the current stock price reflects a scenario that’s simply too extreme.
Specifically, the current stock price implies that Salesforce’s revenue declines by 5% in perpetuity. Guggenheim doesn’t buy that.
The firm underwrites a scenario where Salesforce struggles to grow much but doesn’t crater either, and at 3.7 times recurring revenue and 11 times enterprise value to next-twelve-months free cash flow, that’s a compelling entry point.
The stock also trades at a P/E of 18.2 with a PEG ratio of just 0.46, suggesting the market is deeply discounting its near-term earnings growth.
Monness, Crespi, Hardt also upgraded Salesforce to Buy, citing similar valuation logic. The company recently announced its acquisition of Fin, the AI-driven customer support platform formerly known as Intercom, for approximately $3.6 billion.
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What the Market Is Telling Us About Salesforce Stock
Salesforce stock’s brutal selloff this year reflects a market that has lost patience with the company’s AI narrative. Guggenheim was clear that it remains skeptical on that front too.
The firm says neither product traction nor material revenue contribution from Agentforce is visible in channel conversations or financial results yet.
That said, the underlying business isn’t collapsing.
- In Q1 of fiscal 2027, Salesforce reported revenue of $11.13 billion, up 13% year-over-year,
- Non-GAAP operating margin expanded 250 basis points to 34.8%.
- Agentforce ARR crossed the $1 billion mark.
- The company processed 28.6 trillion tokens in the quarter, up 152% quarter-over-quarter.
- It launched a $25 billion accelerated share repurchase, reducing diluted share count by 10% year-over-year.
None of that has been enough to stop the stock from falling.
But Guggenheim’s point is that the selloff has gone far enough. Salesforce stock is now priced as if the business is in structural decline, and Guggenheim doesn’t think that’s realistic.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
