GuruFocus News
08/27/2026 07:33
Salesforce CRM Analyst Rating Update
On October 12, 2023, BTIG analyst Allan Verkhovski maintained a “Buy” rating for Salesforce (CRM) and raised the price target from $255.00 to $300.00, representing a 17.65% increase.
- GF Value™ verdict: 38.4% undervalued (Current Price $205.62 vs GF Value™ $333.76)
- GF Score™: 86/100, indicating strong overall performance.
- Key financial signal: 21 gurus currently hold CRM, with 9 adding to their positions in recent quarters.
What’s Behind the Analyst Rating?
The recent rating update from BTIG reflects growing confidence in Salesforce’s future performance. By maintaining a “Buy” rating and increasing the price target, analysts are signaling that they believe the stock has significant upside potential. This is particularly important as Salesforce continues to innovate and expand its offerings in the competitive technology sector.
Salesforce Inc, with a market capitalization of approximately $168.4 billion, is a leader in enterprise cloud computing solutions. The company specializes in customer relationship management CRM technology, providing tools that help businesses connect with their customers effectively. Its diverse product suite includes the Customer 360 platform, Service Cloud, Marketing Cloud, and Commerce Cloud, among others, all designed to enhance customer engagement and streamline business operations.
Is CRM Overvalued or Undervalued?
According to GuruFocus, Salesforce CRM is currently significantly undervalued, with a GF Value™ of $333.76 compared to its current price of $205.62. This indicates a margin of safety of 38.4%, suggesting that investors may have an opportunity to acquire shares at a discount relative to their intrinsic value. The stock’s price-to-earnings (P/E) ratio stands at 23.8x, which is notably lower than its 5-year median P/E of 71.71x, further supporting the argument for undervaluation. For more details, visit the GF Value™ page.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ is a comprehensive measure that evaluates a company’s financial strength, profitability, growth potential, valuation, and momentum. Salesforce’s GF Score™ of 86/100 indicates strong performance across various metrics, particularly in profitability and growth, where it ranks 9/10 and 10/10, respectively. However, its valuation rank is lower at 4/10, suggesting that while the company has strong fundamentals, its current valuation may not fully reflect its growth potential.
| Metric | Rating |
|---|---|
| GF Score™ | 86 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 4/10 |
| Momentum | 4/10 |
Salesforce’s strengths lie in its exceptional growth potential and profitability, which are critical indicators for long-term success. However, the lower valuation rank suggests that investors should be cautious and consider the stock’s current price relative to its intrinsic value. For a deeper analysis, visit the CRM stock page.
What Are Gurus and Insiders Doing with CRM?
Currently, 21 gurus hold shares of Salesforce CRM, with 9 adding to their positions and 11 trimming their holdings in recent quarters. This activity indicates a generally positive sentiment among institutional investors, suggesting confidence in the company’s future performance. Notably, there has been no insider buying or selling activity reported in the last three months, which may reflect a stable outlook from company executives.
What This Means for Investors
In summary, Salesforce CRM presents a compelling investment opportunity, as indicated by its significant undervaluation and strong GF Score™. With robust support from analysts and a positive trend in guru ownership, investors may find this stock appealing for long-term growth. For further insights and detailed metrics, check out the CRM stock page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 86/100, indicating strong overall performance across various financial metrics.
CRM is currently undervalued, with a GF Value™ of $333.76 compared to its current price of $205.62, suggesting a 38.4% margin of safety.
What do analysts recommend for CRM?
Analysts maintain a “Buy” rating for CRM, with a recent price target increase to $300.00, indicating confidence in the stock’s potential upside.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
