Key Takeaways
- Monness Crespi Hardt initiated a Buy rating on CRM with a $200 target, highlighting attractive valuation
- Shares have declined 41% year-to-date in 2026 and sit 58% below all-time highs
- The company trades at 18.1x earnings with a PEG ratio of just 0.47
- The $3.6 billion all-cash purchase of Fin (Intercom) drew mostly positive analyst reactions
- Institutional stakeholders control 80.43% of shares, with recent buying activity from major funds
Shares of Salesforce (CRM) are currently changing hands at $151.67, hovering near the 52-week low of $149.80 following a steep 41% decline through 2026. This performance ranks as the second-weakest among stocks tracked by Monness, Crespi, Hardt.
This Wednesday, Monness moved its stance on CRM from Neutral to Buy, establishing a $200 price objective. The firm emphasized that the magnitude of the selloff has created a compelling entry point for investors.
Salesforce now trades 58% beneath the peak it reached in late 2024. When the upgrade was announced, shares were at $155.02 but have since drifted lower.
The valuation metrics support the bullish thesis. CRM currently has a price-to-earnings multiple of 18.1 and a PEG ratio of 0.47. The enterprise maintains a gross profit margin of 77.6% alongside a free cash flow yield reaching 12%.
Monness highlighted the company’s robust cash generation capabilities, strong margin structure, and its $25 billion share repurchase authorization—greenlit in March—as additional factors making the current price level attractive.
Acquisition of Fin
The cloud software giant recently announced plans to acquire Fin, previously operating as Intercom, in an all-cash transaction valued at $3.6 billion. Fin’s artificial intelligence agent technology autonomously handles customer service interactions, achieving a 76% resolution rate while driving more than $400 million in annual recurring revenue.
Multiple Wall Street firms responded favorably to the transaction. Jefferies maintained its Buy recommendation with a $250 price objective. Canaccord Genuity reaffirmed its Buy stance at $225. Stifel kept its Buy rating alongside a $250 target. Wolfe Research sustained its Outperform designation with a $220 objective.
UBS stood apart with a Neutral rating and $185 price target, expressing more reserved expectations regarding the acquisition’s immediate financial contribution.
Financial Results and Forward Outlook
For the quarter disclosed on May 27, Salesforce delivered earnings per share of $3.88, surpassing the Street consensus of $3.13 by $0.75. Top-line [[LINK_START_3]]revenue[[LINK_END_3]] reached $11.13 billion, exceeding the $11.05 billion projection and representing 13.3% growth versus the prior year period.
Management established fiscal 2027 EPS guidance between $14.06 and $14.12, with second quarter 2027 expectations ranging from $3.25 to $3.27. The analyst community currently models full-year EPS at $10.29 on average.
Institutional activity continues at elevated levels. SG Trading Solutions initiated a fresh stake valued at approximately $1.18 million. Temasek, Fisher Asset Management, and Van Eck Associates each expanded existing holdings. Combined institutional and hedge fund ownership now represents 80.43% of outstanding shares.
Wall Street’s consensus price target stands at $257.61. Among 42 analysts covering the name, 26 rate it Buy, 12 have Hold recommendations, and 3 advise Sell. One analyst maintains a Strong Buy rating.
The company announced a quarterly dividend of $0.44 per share, scheduled for distribution on July 2, translating to an annualized yield of 1.2%.
Technically, CRM’s 50-day moving average sits at $177.91. The 200-day moving average registers at $204.72, both significantly above current trading levels.
