Salesforce Inc. (NYSE: CRM) has been through a volatile stretch. After peaking near $369, the stock now trades around $246/share, down about 11% over the past year. Slowing top-line growth, rising competition, and a reset in valuation have weighed on performance. At the same time, margin expansion, strong cash flow, and growing AI adoption have kept investors interested.
Recently, Salesforce has also made headlines with a $20 billion expansion of its share repurchase program and new updates to its Agentforce AI platform, which is designed to embed generative AI across its suite of products. These moves highlight the company’s focus on boosting shareholder returns while doubling down on AI-driven growth, two themes that are shaping how analysts think about its long-term outlook.
This article looks at where Wall Street analysts think Salesforce could trade by 2028. We have reviewed consensus targets, growth forecasts, and valuation models to outline the stock’s potential path. These figures reflect current analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
Salesforce trades at about $243/share today. Analysts have an average price target of $335/share, which points to around 38% upside. Forecasts show a wide spread and reflect mixed sentiment:
- High estimate: ~$430/share
- Low estimate: ~$221/share
- Median target: ~$340/share
- Ratings: mostly Buys, with some Holds and a few Sells
It looks like analysts see Salesforce as undervalued today. Salesforce may need to continue delivering margin expansion and stronger product adoption to push toward the higher end of forecasts.
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Salesforce: Growth Outlook and Valuation
The company’s fundamentals appear steady, though growth has moderated:
- Revenue is projected to rise ~9% annually through 2027
- Operating margins could expand from ~21% to ~35%
- Shares trade at ~20x forward earnings, below the 5-year average of ~39x
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 20x forward P/E suggests ~$318/share by 2028
- That implies ~30% upside, or about 12% annualized returns
These numbers suggest Salesforce could keep compounding steadily, though not at the breakneck pace of earlier years. For investors, the valuation looks more reasonable than in the past, but stronger upside likely depends on faster revenue growth or broader adoption of AI-driven products.
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What’s Driving the Optimism?
Salesforce continues to benefit from steady demand for enterprise software, even as overall market growth has cooled. AI integration across its platform appears to be gaining traction, which could create new revenue opportunities and deepen customer relationships. Margin expansion has also been encouraging, with management tightening expenses and improving efficiency.
On top of this, Salesforce’s gross margins near 78% and strong free cash flow highlight the scalability of the business. Its large installed base and recurring subscription model give it a strong competitive position. For investors, these factors suggest Salesforce could maintain steady growth while justifying a valuation premium, especially if AI adoption accelerates.
Bear Case: Execution and Competition
Despite the positives, Salesforce’s growth outlook has slowed. Revenue is expected to grow at ~9% annually, much lower than its historical 20%+ pace. Competitors like Microsoft, Oracle, and ServiceNow are heavily investing in similar markets, which could pressure Salesforce’s growth and margins.
AI, while promising, also carries risk. If initiatives do not deliver meaningful returns, Salesforce may remain reliant on a slower-growth core business. Rising costs or stalled margin expansion could also weigh on profitability. For investors, the bear case is that the current valuation still assumes reliable execution. If those assumptions fall short, the stock may struggle to reach optimistic targets.
Outlook for 2028: What Could Salesforce Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 20x forward P/E suggests Salesforce could trade near ~$318/share by 2028. That would represent about 30% upside from today’s level, or around 12% annualized returns. The projection assumes steady revenue growth and operating margins moving toward the mid-30s.
While this outcome would be healthy, it already builds in a degree of optimism. To deliver stronger returns, Salesforce may need to outperform expectations on AI-driven adoption or international expansion. Without that, gains may remain steady but unspectacular.
For investors, Salesforce looks like a dependable long-term holding with a more reasonable valuation than in the past. The potential for outsized gains likely depends on the company beating current forecasts.
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