UBS Group Forecasts Strong Price Appreciation for Salesforce (NYSE:CRM) Stock

Key Points

• UBS raised Salesforce’s price target to $240 from $210 while maintaining a neutral rating; the new target was slightly below the stock’s prior close.
• Salesforce shares jumped 21.2% to $249.11, while broader analyst sentiment remained favorable with a “Moderate Buy” consensus and an average target of $255.10.
• The company delivered a strong quarter, reporting $5.90 in EPS versus the $3.27 estimate and $11.35 billion in revenue, while raising fiscal 2027 guidance and highlighting accelerating AI adoption.

Salesforce (NYSE:CRM - Get Free Report) had its target price lifted by equities researchers at UBS Group from $210.00 to $240.00 in a research report issued on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the CRM provider's stock. UBS Group's price objective would indicate a potential downside of 3.66% from the stock's previous close.

Several other analysts also recently commented on the company. Macquarie Infrastructure lowered their price objective on Salesforce from $200.00 to $190.00 and set a "neutral" rating for the company in a research note on Thursday, May 28th. Citizens Jmp reaffirmed a "market outperform" rating and set a $315.00 target price on shares of Salesforce in a research report on Tuesday. Truist Financial reiterated a "buy" rating and set a $300.00 price target (up from $280.00) on shares of Salesforce in a report on Thursday. Sanford C. Bernstein reissued an "outperform" rating on shares of Salesforce in a research report on Thursday. Finally, Wedbush began coverage on Salesforce in a research note on Wednesday, July 1st. They set an "outperform" rating on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating, fifteen have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $255.10.

Salesforce Stock Up 21.2%

CRM stock traded up $43.49 during midday trading on Thursday, reaching $249.11. 13,398,024 shares of the company's stock traded hands, compared to its average volume of 13,608,474. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.15. The firm's fifty day moving average price is $177.13 and its 200-day moving average price is $181.60. Salesforce has a 52 week low of $146.32 and a 52 week high of $269.11. The company has a market cap of $204.02 billion, a price-to-earnings ratio of 28.64, a P/E/G ratio of 1.11 and a beta of 1.16.

Salesforce (NYSE:CRM - Get Free Report) last posted its earnings results on Wednesday, August 26th. The CRM provider reported $5.90 EPS for the quarter, topping the consensus estimate of $3.27 by $2.63. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The company had revenue of $11.35 billion during the quarter, compared to the consensus estimate of $11.33 billion. During the same period in the previous year, the firm posted $2.91 earnings per share. The firm's revenue for the quarter was up 10.8% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 16.670-16.710 EPS and its Q3 2027 guidance at 3.420-3.440 EPS. As a group, sell-side analysts forecast that Salesforce will post 10.27 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CRM. Commonwealth Retirement Investments LLC bought a new stake in shares of Salesforce in the fourth quarter valued at approximately $25,000. Manning & Napier Advisors LLC purchased a new position in Salesforce in the 2nd quarter valued at approximately $26,000. Gilpin Wealth Management LLC purchased a new stake in shares of Salesforce during the fourth quarter worth $26,000. Persistent Asset Partners Ltd bought a new position in shares of Salesforce in the second quarter worth $27,000. Finally, Costello Asset Management INC grew its position in shares of Salesforce by 410.3% in the first quarter. Costello Asset Management INC now owns 148 shares of the CRM provider's stock valued at $28,000 after purchasing an additional 119 shares in the last quarter. Hedge funds and other institutional investors own 80.43% of the company's stock.

Key Salesforce News

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Earnings beat expectations: Salesforce reported adjusted earnings of $5.90 per share, well above the $3.27 analyst consensus, while revenue rose 10.8% year over year to $11.35 billion, slightly exceeding estimates. Salesforce Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Raised outlook: Management increased fiscal 2027 guidance to $46.1 billion-$46.4 billion in revenue and $16.67-$16.71 in EPS. Third-quarter EPS guidance of $3.42-$3.44 also exceeds the $3.16 consensus, signaling confidence in sustained growth. Salesforce Raises Annual Revenue Forecasts on AI Product Momentum
• Positive Sentiment: AI adoption is accelerating: Agentforce annual recurring revenue reached $1.5 billion, and management said AI usage on the platform increased sixfold. These metrics help counter fears that generative AI could replace traditional enterprise software. Salesforce Q2 2027 Earnings Call Highlights
• Positive Sentiment: Anthropic partnership expands: Salesforce and Anthropic introduced “Claudeforce,” integrating Claude with Salesforce data, workflows and 37 prebuilt sales skills. The collaboration supports Salesforce’s effort to make AI agents a growth engine and reinforces its competitive positioning. Salesforce and Anthropic Announce Claudeforce
• Neutral Sentiment: Analyst sentiment improved: Needham reaffirmed its Buy rating with a $400 target, while Monness Crespi & Hardt raised its target to $266 and Cantor Fitzgerald maintained Overweight with a $250 target. These targets imply substantial upside but do not guarantee future performance.
• Negative Sentiment: Risks remain: Revenue growth remains near 11%, and Salesforce’s stock has been volatile amid concerns about AI-driven software disruption. The large investment gain cited in the quarter may also be less recurring than operating results.

About Salesforce

Salesforce, founded in 1999 and headquartered in San Francisco, is a global provider of cloud-based software focused on customer relationship management (CRM) and enterprise applications. The company popularized the software-as-a-service (SaaS) model for CRM and has built a broad portfolio of products designed to help organizations manage sales, service, marketing, commerce and analytics through a unified, cloud-first platform.

Core offerings include Sales Cloud for sales automation, Service Cloud for customer support, Marketing Cloud for digital marketing and engagement, and Commerce Cloud for e-commerce.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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