Canaccord Genuity Group Reiterates Buy Rating for Salesforce (NYSE:CRM)

Key Points

• Canaccord Genuity Group reiterated a Buy rating on Salesforce and set a $225 price target, implying about 38.6% upside from the prior close.
• Other analysts remain generally constructive, with Salesforce holding an average Moderate Buy rating and a consensus price target of $259.26, though several firms have recently trimmed their targets.
• Salesforce shares were down 1.3% to about $162.35, near their 52-week low, despite the company’s latest quarter beating EPS and revenue estimates and announcing a $25 billion share repurchase plan.

Salesforce (NYSE:CRM - Get Free Report)'s stock had its "buy" rating reiterated by analysts at Canaccord Genuity Group in a research report issued on Tuesday,Benzinga reports. They currently have a $225.00 price objective on the CRM provider's stock. Canaccord Genuity Group's price target suggests a potential upside of 38.59% from the company's previous close.

Several other equities research analysts have also recently issued reports on CRM. Oppenheimer decreased their target price on shares of Salesforce from $275.00 to $250.00 and set an "outperform" rating on the stock in a research report on Thursday, February 26th. BMO Capital Markets decreased their target price on shares of Salesforce from $225.00 to $215.00 and set an "outperform" rating on the stock in a research report on Thursday, May 28th. Wolfe Research reaffirmed an "outperform" rating on shares of Salesforce in a research report on Monday. DA Davidson reduced their price target on shares of Salesforce from $200.00 to $175.00 and set a "neutral" rating on the stock in a research report on Thursday, May 28th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Salesforce in a research report on Thursday, May 28th. One research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $259.26.

Salesforce Trading Down 1.3%

Shares of CRM traded down $2.20 during mid-day trading on Tuesday, hitting $162.35. The company had a trading volume of 5,378,587 shares, compared to its average volume of 13,386,955. The business's 50-day simple moving average is $179.65 and its 200-day simple moving average is $206.26. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 1.15. Salesforce has a 1-year low of $161.40 and a 1-year high of $276.80. The stock has a market cap of $132.97 billion, a PE ratio of 18.79, a P/E/G ratio of 1.03 and a beta of 1.16.

Salesforce (NYSE:CRM - Get Free Report) last released its earnings results on Wednesday, May 27th. The CRM provider reported $3.88 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.13 by $0.75. Salesforce had a net margin of 18.73% and a return on equity of 18.72%. The business had revenue of $11.13 billion for the quarter, compared to analysts' expectations of $11.05 billion. During the same period last year, the company earned $2.58 earnings per share. The company's quarterly revenue was up 13.3% on a year-over-year basis. Salesforce has set its FY 2027 guidance at 14.060-14.120 EPS and its Q2 2027 guidance at 3.250-3.270 EPS. Sell-side analysts forecast that Salesforce will post 10.29 earnings per share for the current year.

Salesforce announced that its board has initiated a share repurchase plan on Monday, March 16th that permits the company to buyback $25.00 billion in outstanding shares. This buyback authorization permits the CRM provider to reacquire up to 14.1% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Laura Alber acquired 2,571 shares of the company's stock in a transaction dated Thursday, March 19th. The shares were bought at an average price of $194.58 per share, for a total transaction of $500,265.18. Following the completion of the purchase, the director directly owned 9,530 shares of the company's stock, valued at approximately $1,854,347.40. This trade represents a 36.94% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Director David Blair Kirk purchased 2,570 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The stock was bought at an average price of $194.62 per share, with a total value of $500,173.40. Following the purchase, the director owned 13,689 shares of the company's stock, valued at approximately $2,664,153.18. The trade was a 23.11% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Company insiders own 3.50% of the company's stock.

Hedge Funds Weigh In On Salesforce

Several hedge funds and other institutional investors have recently modified their holdings of the company. Byrne Asset Management LLC grew its position in shares of Salesforce by 1.0% during the fourth quarter. Byrne Asset Management LLC now owns 4,331 shares of the CRM provider's stock worth $1,147,000 after acquiring an additional 43 shares during the last quarter. Mathes Company Inc. grew its position in shares of Salesforce by 0.4% during the third quarter. Mathes Company Inc. now owns 12,558 shares of the CRM provider's stock worth $2,976,000 after acquiring an additional 45 shares during the last quarter. Fred Alger Management LLC grew its position in shares of Salesforce by 0.3% during the third quarter. Fred Alger Management LLC now owns 14,943 shares of the CRM provider's stock worth $3,548,000 after acquiring an additional 45 shares during the last quarter. Beacon Capital Management LLC grew its position in shares of Salesforce by 3.5% during the third quarter. Beacon Capital Management LLC now owns 1,372 shares of the CRM provider's stock worth $325,000 after acquiring an additional 46 shares during the last quarter. Finally, Fulcrum Asset Management LLP grew its position in shares of Salesforce by 1.7% during the third quarter. Fulcrum Asset Management LLP now owns 2,774 shares of the CRM provider's stock worth $657,000 after acquiring an additional 46 shares during the last quarter. Institutional investors and hedge funds own 80.43% of the company's stock.

Salesforce News Roundup

Here are the key news stories impacting Salesforce this week:

• Positive Sentiment: Salesforce agreed to buy AI customer-service platform Fin for about $3.6 billion, a move that should strengthen its Agentforce and broader autonomous AI offerings. Investors are viewing the deal as a way to deepen Salesforce’s customer engagement capabilities and improve its competitive position in enterprise software. Reuters: Salesforce to buy Fin for about $3.6 billion
• Positive Sentiment: Analysts and market commentary say Salesforce’s record cash generation, improving margins, and large buyback plan give it flexibility to reward shareholders while still investing in growth. Zacks: Can CRM's Record Cash Generation Support Robust Shareholder Returns?
• Positive Sentiment: Some analysts see Salesforce as undervalued, with Cantor Fitzgerald reaffirming a Buy rating and a $250 target, implying meaningful upside from current levels. Insider Monkey: This Analyst Believes Salesforce (CRM) Stock Is Trading At A 52% Discount
• Neutral Sentiment: Salesforce has also been praised for continued AI investment and strong fundamentals, with commentary pointing to revenue growth, margin expansion, and potential second-half acceleration tied to Agentforce adoption. Seeking Alpha: Salesforce Is Consuming Everything Between AI And Itself
• Negative Sentiment: Despite the upbeat AI deal news, Salesforce’s shares have been in a strong downtrend this year, with the stock hovering near its lowest levels since 2023 and the company’s market value sharply reduced from prior highs. Invezz: Salesforce stock wipeout hits $212B as acquisition spree backfires

Salesforce Company Profile

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.

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