GuruFocus News
09/17/2026 09:02
Salesforce CRM Analyst Rating Update – October 2023
On October 16, 2023, RBC Capital maintained a price target of $250 for Salesforce (CRM) while reiterating its rating of “Sector Perform”.
- GF Value™ verdict: CRM is currently 29.3% undervalued with a GF Value™ of $343.34 compared to its current price of $242.69.
- GF Score™: 91/100, indicating strong overall performance.
- Key financial signal: 19 gurus hold CRM, with 9 adding and 9 trimming their positions in recent quarters.
What’s Behind the Analyst Rating?
The recent analyst rating from RBC Capital reflects a cautious outlook for Salesforce amid a competitive technology landscape. The “Sector Perform” rating suggests that while the company is performing adequately, analysts do not foresee significant outperformance compared to its peers in the technology sector. This cautious stance may be influenced by the broader economic conditions and the company’s recent performance metrics.
Salesforce Inc, a leader in customer relationship management CRM software, operates in the technology sector, specifically within the software industry. With a market capitalization of approximately $199.73 billion, Salesforce provides a comprehensive suite of cloud-based solutions that help organizations manage customer relationships effectively. The company’s Customer 360 platform integrates various functionalities, including sales, service, marketing, and analytics, making it a pivotal player in the enterprise cloud computing space.
Is CRM Overvalued or Undervalued?
According to GuruFocus, Salesforce’s GF Value™ is calculated at $343.34, which indicates that the stock is currently undervalued by 29.3% compared to its market price of $242.69. This substantial margin of safety suggests that investors may have an opportunity to acquire shares at a discount relative to the company’s intrinsic value. Furthermore, the stock’s price-to-earnings (P/E) ratio stands at 22.12x, significantly lower than its 5-year median P/E of 70.08x, indicating that the stock may be undervalued based on historical performance. 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 91/100 highlights its strong fundamentals, particularly in profitability and growth, where it ranks 9/10 and 10/10, respectively. However, its momentum rank is comparatively lower at 5/10, indicating some volatility in stock performance.
| 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 robust profitability and exceptional growth potential, which are critical indicators for long-term investors. However, the moderate momentum rank suggests that investors should be cautious and monitor market trends closely. For further insights, visit the CRM stock page.
What Are Gurus and Insiders Doing with CRM?
Currently, 19 gurus hold shares of Salesforce, with 9 adding to their positions and 9 trimming their holdings in recent quarters. This mixed activity among institutional investors suggests a balanced outlook on the stock. Additionally, insider activity shows a significant sell value of $1,172,740 over the past three months, indicating that while some insiders are selling, there is still considerable interest from institutional investors.
What This Means for Investors
Given the substantial undervaluation indicated by the GF Value™ and the strong GF Score™, Salesforce presents an intriguing opportunity for investors looking for growth in the technology sector. The mixed signals from gurus and insiders suggest a cautious approach, but the company’s strong fundamentals may provide a solid foundation for future performance. For more detailed analysis, check out the CRM stock page.
Frequently Asked Questions
What is CRM’s GF Score™?
CRM’s GF Score™ is 91/100, indicating strong overall performance based on various financial metrics.
CRM is currently undervalued by 29.3%, with a GF Value™ of $343.34 compared to its market price of $242.69.
What do analysts recommend for CRM?
Analysts have a mixed outlook, with RBC Capital maintaining a “Sector Perform” rating and a price target of $250, while other firms have set higher targets.
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.
