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Salesforce’s fair value estimate has been reset from US$317.21 to US$255.28, a cut of about 19.5% that has quickly become the focal point of the latest research updates. Many analysts are trimming price targets while still highlighting potential upside linked to second half FY27 revenue acceleration and AI related opportunities. Others point to execution risks and questions around growth reacceleration and AI monetization. In the sections that follow, you will see how this split narrative is evolving and what to watch as new information comes through.
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Several firms, including Jefferies, Truist, TD Cowen, Roth Capital, BMO Capital, KeyBanc, Baird, Canaccord, Deutsche Bank and Barclays, maintain positive ratings on Salesforce stock, even as they reset price targets to reflect more cautious assumptions.
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Jefferies and Truist see the US$3.6b Fin acquisition as a way for Salesforce to speed up AI adoption across its installed base. They cite Fin’s AI pivot, its own LLM and outcome based pricing as potential contributors to the broader product set.
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Roth Capital highlights that cost controls and a US$25b debt funded buyback have supported EPS growth. Management commentary still points to a potential revenue acceleration in the second half of FY27.
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TD Cowen, BMO Capital and Canaccord describe Q1 as broadly in line with expectations. AI related products such as Agentforce, data offerings and Slack pipelines are referenced as drivers tied to management’s acceleration narrative.
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BofA’s Underperform rating and US$160 price target reflect concern that AI transition could mean muted new customer additions, limited upsell opportunities and a less convincing AI monetization path for Salesforce.
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Northland, Citi, UBS, Wells Fargo and Bernstein have all moved price targets lower. They cite decelerating constant currency cRPO estimates, a Q2 growth outlook they view as soft versus expectations and uncertainty around whether the second half FY27 acceleration will materialize.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!
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