Next 6-12 months crucial for prediction platforms like Kalshi and Polymarkets
Investing.com - Raymond James maintained its Strong Buy rating on salesforce.com (NYSE:CRM) with a price target of $375.00 following the company’s third-quarter report. Currently trading at $238.72, Salesforce is considered undervalued according to InvestingPro Fair Value estimates, with analyst targets ranging from $221 to $430.
The firm highlighted "substantial evidence of building Agentforce traction" in its analysis, suggesting investors would likely overlook timing dynamics that impacted third-quarter revenue, particularly given the strong 11% growth in current remaining performance obligation (cRPO). This growth comes as Salesforce maintains impressive 77.65% gross profit margins and a perfect Piotroski Score of 9, indicating excellent financial strength.
Agentforce reached a significant milestone by surpassing $500 million in annual recurring revenue (ARR), which Raymond James described as "one of the most impressive displays of AI monetization across enterprise software to date."
The research firm noted that the company’s tone on demand was "the strongest it’s been in several years," while efficient go-to-market investments have supported recent momentum.
Raymond James expressed increased conviction in growth acceleration for Salesforce in coming quarters, describing the risk/reward profile for the stock as "simply too attractive at 15x our CY26 FCF estimate after hours."
In other recent news, Salesforce’s third-quarter earnings report has garnered attention from several analyst firms. Stifel reiterated its Buy rating and maintained a $300 price target, noting strong momentum in Salesforce’s key metrics, including accelerated growth in constant currency current remaining performance obligation (CRPO) and net new annual order value (NNAOV). KeyBanc also reaffirmed an Overweight rating with a $400 price target, highlighting Salesforce’s significant milestone where NNAOV growth surpassed overall annual order value growth for the first time in three years. BofA Securities maintained its Buy rating and $305 price target, pointing to Salesforce’s 11% CRPO growth in constant currency, which exceeded the company’s guidance and suggests potential for AI-driven business acceleration. Goldman Sachs reiterated a Buy rating with a $385 price target, emphasizing the positive response to Salesforce’s strengthening AI momentum, which aligns with the company’s revenue reacceleration plans. Meanwhile, Citizens lowered its price target from $430 to $405 but maintained a Market Outperform rating, citing modest total revenue growth of 8% in constant currency during the fiscal third quarter. These developments collectively reflect a varied but generally optimistic outlook from analysts regarding Salesforce’s future performance.
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