GuruFocus News
08/31/2026 08:04
Salesforce CRM Analyst Rating Update
On October 23, 2023, Salesforce (CRM) has been maintained at a “Buy” rating by Argus Research, with analyst Joseph Bonner adjusting the price target to $300.00, representing a 3.45% increase from the prior target of $290.00.
- GF Value™ verdict: 24.5% undervalued (Current Price: $256.00 vs GF Value™: $339.05)
- GF Score™: 90/100, indicating strong overall performance
- Financial Strength: 5/10, suggesting moderate risk
What’s Behind the Analyst Rating?
The recent rating update from Argus Research reflects a positive outlook for Salesforce, which continues to be a leader in the enterprise cloud computing space. The increase in the price target to $300.00 indicates analysts’ confidence in the company’s growth trajectory and market position. This adjustment comes amid a backdrop of strong performance metrics and a favorable market environment for technology stocks.
Salesforce Inc, with a market capitalization of approximately $210.69 billion, operates in the technology sector, specifically within the software industry. The company is renowned for its Customer 360 platform, which integrates customer data across various systems and applications, enabling businesses to enhance their customer relationship management capabilities. This comprehensive approach has solidified Salesforce’s position as a go-to solution for enterprises looking to leverage cloud technology.
Is CRM Overvalued or Undervalued?
According to GuruFocus, Salesforce’s GF Value™ stands at $339.05, which indicates that the stock is currently 24.5% undervalued compared to its market price of $256.00. This margin of safety suggests that investors may have an opportunity to buy into a solid company at a discount. Furthermore, the current P/E (TTM) ratio of 23.34x is significantly lower than its 5-year median P/E of 71.71x, highlighting a potential mispricing in the market. For more insights, visit the GF Value™ page.
What Does CRM’s GF Score™ Tell Us?
The GF Score™ evaluates a company’s financial strength, profitability, growth potential, valuation, and momentum. Salesforce’s GF Score™ of 90/100 reflects its robust performance across several key metrics, particularly in profitability and growth. The company ranks 9th in profitability and 10th in growth, indicating strong operational efficiency and a promising growth outlook. However, its momentum rank of 4 suggests that it may face some challenges in maintaining its current pace.
| 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 high growth and profitability rankings, which are crucial indicators of its operational success. However, the lower momentum score suggests that the stock may not be experiencing the same upward trajectory as some of its peers, warranting caution for potential investors. For a deeper analysis, check out the CRM stock page.
What Are Gurus and Insiders Doing with CRM?
Currently, 19 gurus hold positions in Salesforce CRM, with 9 adding to their stakes and 9 trimming their holdings in recent quarters. This mixed activity among prominent investors indicates a cautious but generally positive 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
Given the current undervaluation of Salesforce CRM according to the GF Value™, alongside a strong GF Score™ of 90/100, the company presents an attractive opportunity for investors looking for growth in the technology sector. However, the mixed signals from guru activity and the moderate financial strength rating should encourage potential investors to conduct further research before making any decisions. For more detailed insights, 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 in various financial metrics.
CRM is currently undervalued by 24.5%, with a GF Value™ of $339.05 compared to its market price of $256.00.
What do analysts recommend for CRM?
Analysts maintain a “Buy” rating for CRM, with several raising their price targets, reflecting confidence in the company’s growth.
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.
