Quick Overview
- JPMorgan launched coverage of Salesforce (CRM) with an Overweight recommendation and $250 price objective, dismissing AI threat concerns as exaggerated
- Shares began trading at $193.20, declining 2.1%, significantly beneath the 52-week peak of $269.11
- Previous quarter results showed Salesforce surpassing projections with $11.13B in revenue and $3.88 EPS versus $3.13 consensus
- Institutional ownership stands at 80.43% of outstanding shares; short positions decreased 36.7% in late July
- Wall Street consensus rating is “Moderate Buy” with average price objective of $250.28
On August 13, JPMorgan began coverage of Salesforce (CRM) with an Overweight designation, establishing a December 2027 price objective of $250. Analyst Samik Chatterjee stated that the concerns weighing on shares are exaggerated and that current pricing reflects expectations of continued growth slowdown instead of acknowledging the company’s advancement toward its Rule of 50 objective for fiscal year 2030.
Shares of CRM started Thursday’s session at $193.20, declining approximately 2.1% for the day. The equity remains considerably below its 52-week peak of $269.11 while staying above the low point of $146.32. The 50-day moving average stands at $170.96, while the 200-day average is positioned at $182.38.
JPMorgan’s Chatterjee indicated expectations for Salesforce’s primary business segments to accelerate during the latter half of fiscal 2027, concluding in January 2027. He emphasized that worries regarding disruption from advanced AI models and competitive pressures “should affect only a minor segment of the overall business.”
The investment firm also highlighted valuation considerations, describing the stock as “attractively priced” considering low double-digit revenue expansion, industry-leading profit margins, and dominant market position in enterprise CRM solutions. JPMorgan suggested potential upside could materialize even without revenue acceleration, driven solely by consistent growth rates and margin performance.
Strong Quarterly Performance, Forward Guidance Under Scrutiny
Salesforce released fiscal Q1 2027 earnings on May 27. Revenue reached $11.13 billion, representing 13.3% year-over-year growth and surpassing the $11.05 billion analyst consensus. Earnings per share of $3.88 exceeded the $3.13 estimate by $0.75.
Management provided fiscal 2027 EPS guidance ranging from $14.06 to $14.12, with Q2 EPS projected between $3.25 and $3.27. The analyst community anticipates average full-year EPS of $10.27.
The company distributes a quarterly dividend of $0.44 per share, translating to an annualized dividend of $1.76 with approximately 0.9% yield.
Wall Street Opinion Landscape Shows Mixed Sentiment
JPMorgan’s bullish stance isn’t universally shared. UBS elevated its price objective from $185 to $210 while maintaining a neutral stance, noting that Salesforce might moderate expectations for second-half revenue acceleration. Wells Fargo increased its target from $200 to $205 while keeping an equal-weight rating.
Sanford C. Bernstein reduced its target from $194 to $173 with an underperform designation. BMO Capital decreased its objective from $225 to $215 but preserved an outperform rating. BTIG maintained a buy recommendation with a $255 target.
Wall Street Zen downgraded CRM from buy to hold status on August 1. Weiss Ratings moved the stock to a sell rating in late July.
Collectively, the equity maintains a “Moderate Buy” rating from MarketBeat, featuring an average price target of $250.28. This consensus comprises two strong buy ratings, 25 buys, 16 holds, and four sell recommendations.
Among institutional investors, Wealthcare Advisory Partners expanded its position by 36.7% during Q2, acquiring 4,664 shares to reach 17,364 shares valued at approximately $2.72 million. Institutional ownership collectively represents 80.43% of the company.
Short interest in CRM dropped 36.7% during the second half of July to 29.4 million shares, alleviating some bearish pressure that had accumulated against the stock.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
