GuruFocus News
09/01/2026 09:30
Salesforce CRM Analyst Rating Update
On October 10, 2023, TD Cowen maintained a ‘Buy’ rating for Salesforce (CRM), raising the price target from $280.00 to $300.00, reflecting a 7.14% increase.
- GF Value™ verdict: 24.6% undervalued (Current Price: $255.57 vs GF Value™: $339.05)
- GF Score™: 90/100, indicating strong overall performance
- Financial Strength: 5/10, suggesting moderate financial stability
What’s Behind the Analyst Rating?
The recent update from TD Cowen signifies a positive outlook for Salesforce, as analyst Derrick Wood not only maintained a ‘Buy’ rating but also increased the price target. This adjustment reflects confidence in the company’s growth trajectory and market position, especially in a competitive technology sector. The raised target indicates that analysts expect Salesforce to continue delivering robust performance, driven by its innovative cloud computing solutions.
Salesforce Inc, a leading player in the technology sector, specializes in enterprise cloud computing solutions, particularly customer relationship management CRM technology. With a market capitalization of approximately $210.33 billion, Salesforce provides a comprehensive suite of services through its Customer 360 platform, which integrates customer data across various systems to enhance business operations. The company’s commitment to innovation and customer-centric solutions positions it favorably in the software industry.
Is CRM Overvalued or Undervalued?
According to GuruFocus, Salesforce has a GF Value™ of $339.05, indicating that the stock is currently undervalued by 24.6% when compared to its current price of $255.57. This margin of safety suggests that investors may have an opportunity to purchase shares at a discount relative to their intrinsic value. Additionally, the stock’s P/E (TTM) ratio stands at 23.3x, significantly lower than its 5-year median P/E of 70.9x, further supporting the notion that CRM is undervalued. 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 health, growth potential, and valuation metrics. Salesforce’s GF Score™ of 90/100 reflects its strong performance across various dimensions, particularly in profitability and growth. The company ranks exceptionally well in profitability (9/10) and growth (10/10), indicating robust earnings potential and expansion capabilities. However, its momentum rank is relatively lower at 4/10, suggesting that recent price movements may not be as favorable.
| Metric | Rating |
|---|---|
| GF Score™ | 90 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 4/10 |
Salesforce’s strengths lie in its exceptional growth and profitability rankings, showcasing its ability to generate strong earnings and expand its market presence. However, the lower momentum rank indicates that investors should monitor the stock’s recent performance closely. For further insights, check the CRM stock page.
What Are Gurus and Insiders Doing with CRM?
Currently, 19 gurus hold shares of CRM, with 9 adding to their positions and 9 trimming their holdings in recent quarters. This mixed activity among premium gurus indicates a balanced sentiment towards the stock. Additionally, there has been no insider buying or selling activity reported in the last three months, suggesting that insiders may be confident in the company’s future prospects.
What This Means for Investors
With a GF Value™ indicating that Salesforce is modestly undervalued and a strong GF Score™ of 90/100, the company presents an attractive opportunity for investors seeking growth in the technology sector. The recent analyst rating updates further reinforce the positive outlook for CRM, making it a stock worth monitoring closely. For more detailed analysis, visit the CRM stock page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 90/100, indicating strong overall performance across various financial metrics.
CRM is currently undervalued by 24.6%, with a GF Value™ of $339.05 compared to its current price of $255.57.
What do analysts recommend for CRM?
Analysts maintain a ‘Buy’ rating for CRM, with recent price targets reflecting positive expectations for the stock’s performance.
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.
