GuruFocus News
09/18/2026 08:06
Salesforce CRM Analyst Rating Update – October 2023
On October 17, 2023, Wells Fargo maintained its Equal-Weight rating on Salesforce (CRM). The price target was increased from $230.00 to $250.00, reflecting an 8.70% change.
- GF Value™ verdict: Salesforce is currently 29.3% undervalued with a GF Value™ of $343.60 compared to its current price of $242.85.
- GF Score™: 91/100, indicating strong overall performance.
- Key financial signal: The P/E (TTM) stands at 22.13x, significantly lower than its 5-year median P/E of 70.08x.
What’s Behind the Analyst Rating?
The recent rating update from Wells Fargo reflects a cautious optimism about Salesforce’s growth trajectory. By maintaining an Equal-Weight rating while raising the price target, the analyst acknowledges the company’s potential for growth but also indicates that the stock may not be a strong buy at current levels. The increase in the price target suggests confidence in Salesforce’s ability to meet or exceed market expectations in the near future.
Salesforce Inc, a leader in customer relationship management CRM software, operates within the technology sector and specifically in the software industry. With a market capitalization of approximately $199.87 billion, Salesforce provides a comprehensive suite of cloud-based solutions designed to enhance customer engagement and streamline business processes. The company has established itself as a pioneer in the software-as-a-service (SaaS) model since its founding in 1999.
Is CRM Overvalued or Undervalued?
According to the GF Value™ metric, Salesforce is currently valued at $343.60, which indicates that the stock is 29.3% undervalued compared to its current trading price of $242.85. This margin of safety suggests that investors may have an opportunity to acquire shares at a discount relative to their intrinsic value. The P/E (TTM) of 22.13x is notably lower than the 5-year median P/E of 70.08x, further supporting the argument for undervaluation. For more detailed insights, 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 91/100 indicates a strong overall performance, with notable strengths in profitability and growth. However, its momentum rank is relatively weaker compared to other metrics.
| Metric | Rating |
|---|---|
| GF Score™ | 91 |
| Financial Strength | 5/10 |
| Profitability | 9/10 |
| Growth | 10/10 |
| Valuation | 8/10 |
| Momentum | 5/10 |
Salesforce’s strengths lie in its exceptional growth and profitability rankings, which are critical indicators of its operational efficiency and market competitiveness. However, the financial strength and momentum ranks suggest that there may be areas for improvement, particularly in maintaining a robust balance sheet and sustaining upward price momentum. For further details, visit 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 indicates a balanced sentiment among institutional investors. Additionally, insider activity shows that there have been no insider purchases in the last three months, while insider selling amounted to approximately $1,172,740. Such signals can provide valuable insights into the confidence levels of both institutional and insider investors.
What This Means for Investors
Given Salesforce’s GF Value™ assessment of being 29.3% undervalued and a strong GF Score™ of 91/100, the company presents a compelling case for potential investment consideration. However, investors should also weigh the mixed signals from guru and insider activities, as well as the current market conditions. For a more comprehensive analysis, visit the CRM stock page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 91/100, indicating strong overall performance across various financial metrics.
CRM is currently undervalued by 29.3%, with a GF Value™ of $343.60 compared to its current price of $242.85.
What do analysts recommend for CRM?
Analysts have maintained an Equal-Weight rating on CRM, with a recent price target increase to $250.00, reflecting cautious optimism about 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.
