Key Takeaways
- Goldman Sachs reaffirmed its Buy recommendation and $242 price objective for Salesforce (CRM), trading at $171.22 per share
- Goldman analyst Gabriela Borges anticipates organic revenue growth will pick up in the third quarter, fueled by improved business momentum and booking strength
- The cloud software giant is advancing its AI revenue strategy through consumption pricing models, premium product bundles, and agentic licensing structures
- Early adopters deploying Salesforce alongside AI agents report usage levels up to five times higher, with Slack seeing notable gains
- The company’s $3.6 billion acquisition of Fin (previously Intercom) aims to bolster AI-powered customer service offerings
Shares of Salesforce (CRM) are changing hands at $171.22, representing a 28% decline during the last six-month period. Despite this downturn, Goldman Sachs maintains its Buy recommendation along with a $242 price objective, suggesting the shares are trading below their intrinsic value.
Goldman analyst Gabriela Borges met with Salesforce investor relations executives in London during July 6-7. These discussions provided fresh insights into the company’s strategic direction and operational trajectory.
Borges anticipates the enterprise software leader will experience accelerating organic revenue expansion during the third quarter. Her optimism stems from observable improvements in new customer acquisition and heightened booking activity across the platform.
The analyst interprets management’s transparent discussion of challenges within Tableau, Commerce, and Marketing divisions as a realistic assessment rather than fundamental weakness. Goldman Sachs appreciates the company’s candid acknowledgment that these headwinds may persist for 12 to 24 months while affecting growth trajectories.
Artificial Intelligence Revenue Strategy Takes Shape
Salesforce is constructing what Borges describes as a “headless” approach to AI monetization. This framework encompasses usage-based pricing structures, premium feature bundling, and AI agent-specific licensing options, with comprehensive details anticipated at September’s Agentforce conference.
Early performance metrics around AI agents present compelling evidence. Organizations implementing Salesforce solutions integrated with AI agents demonstrate usage patterns up to five times greater compared to traditional deployments. Meanwhile, Slack continues showing resilience as the platform introduces new large language model capabilities.
According to InvestingPro data, twenty-four Wall Street analysts have raised their earnings projections for the coming quarter. Additionally, the company maintains an impressive 77.6% gross profit margin, providing financial flexibility to navigate short-term operational challenges.
Fin Purchase Strengthens AI Service Portfolio
Salesforce revealed plans to acquire Fin, the company formerly operating as Intercom, in a transaction valued at approximately $3.6 billion. Goldman Sachs characterizes Fin as ranking among only three or four premier platforms within the AI-powered customer service sector.
According to Borges, the critical consideration centers on whether Salesforce can successfully merge Fin’s technological capabilities with its current Agentforce infrastructure and extend these solutions to smaller enterprise customers following deal completion.
Wall Street opinion remains divided on the stock. KeyBanc lowered its stance to Sector Weight from Overweight, expressing uncertainty about the timeline for Agentforce to generate meaningful revenue contribution.
Conversely, Guggenheim elevated Salesforce to Buy from Neutral, pointing to attractive valuation levels at present price points.
Citizens JMP retained its Market Outperform outlook with a $315 price objective after the Fin acquisition announcement. Monness similarly holds a Buy recommendation, albeit with a more measured $200 target.
The company has also formed a strategic alliance with the Visa Cash App Racing Bulls Formula 1 Team, deploying its Agentforce 360 solution and Slack platform to enhance fan interaction and optimize team coordination.
Goldman’s $242 valuation target represents approximately 41% potential appreciation from the stock’s current level of $171.22.
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