Key Takeaways
- CRM shares have plummeted approximately 41% since the start of the year and roughly 58% from their late-2024 high, beginning Friday’s session at $165.94
- Guggenheim shifted its rating on Salesforce from Neutral to Buy, establishing a $228 target and describing current prices as an “Armageddon” valuation
- Analyst consensus points to a Moderate Buy rating, with average targets near $254 — suggesting potential gains of 55% to 57%
- The company surpassed Q1 projections, delivering $3.88 EPS versus the anticipated $3.13, while revenue reached $11.13B with 13.3% year-over-year growth
- Salesforce’s AI-driven offerings — encompassing Agentforce and Slack-integrated agents — are now producing more than $2.3B in annual recurring revenue
Shares of Salesforce (CRM) began Friday trading at $165.94, marking a steep decline of approximately 41% for the year and around 58% below the company’s late-2024 peak of nearly $276.80. The dramatic pullback has been fueled primarily by investor anxiety that emerging AI agent technology could render conventional CRM platforms outdated.
Yet many on Wall Street believe the narrative isn’t finished.
Guggenheim’s John DiFucci elevated his rating on CRM from Neutral to Buy recently, establishing a $228 price objective. His reasoning: trading at approximately 3.7 times recurring revenue and 11 times EV/NTM free cash flow, the stock already reflects a scenario where revenue contracts by 5% indefinitely — a projection he deems implausible.
Citigroup similarly upgraded Salesforce to Buy recently, joining a mounting wave of analysts arguing the downturn has been excessive.
Current Street consensus registers at Moderate Buy, with 28 analysts assigning Buy ratings, 6 maintaining Hold positions, and 4 recommending Sell.
The mean price objective hovers around $254, indicating approximately 55% to 57% appreciation potential from present levels. Citizens JMP holds the Street’s most optimistic forecast at $315.
Quarterly Performance Exceeds Forecasts
Salesforce unveiled Q1 figures on May 27th that surpassed Wall Street projections. The enterprise software giant delivered earnings per share of $3.88, topping the consensus estimate of $3.13 by $0.75. Revenue registered at $11.13 billion, climbing 13.3% from the prior year and narrowly exceeding the anticipated $11.05 billion.
Looking ahead to fiscal 2027, management provided full-year EPS guidance of $14.060 to $14.120. For Q2 2027, the company forecasts earnings between $3.250 and $3.270 per share.
The stock’s 52-week range spans from a low of $146.32 to a high of $276.80. Its 50-day moving average currently stands at $173.23, while the 200-day moving average rests at $197.71.
Artificial Intelligence Revenue Materializing
Despite widespread concerns about AI-driven disruption, Salesforce’s proprietary AI solutions are delivering substantial financial results. The company’s artificial intelligence portfolio — featuring Agentforce, Data 360, Slack-integrated AI agents, and Headless 360 APIs — is currently generating over $2.3 billion in rapidly expanding annual recurring revenue.
This figure has become a focal point for analysts who argue the company is not merely protecting its existing market position — it’s actively creating new revenue streams.
On the institutional investment front, Kepler Cheuvreux Suisse SA expanded its Salesforce stake by 284.1% during Q1, acquiring an additional 12,568 shares to reach a total position of 16,992 shares valued at roughly $3.17 million.
Vanguard Group maintains 89.8 million shares worth approximately $23.8 billion. State Street controls 50 million shares, while institutional investors collectively hold 80.43% of outstanding equity.
Salesforce distributed a quarterly dividend of $0.44 per share on July 2nd, equating to an annualized payout of $1.76 and yielding approximately 1.1%.
The board approved a $25 billion share buyback authorization in March, enabling the company to repurchase up to 14.1% of outstanding shares through open market transactions.
HC Wainwright moved in the opposite direction, downgrading CRM to a Negative rating on June 18th — representing one of just four Sell-side recommendations currently outstanding on the stock.
