Key Highlights
- Monness elevates CRM rating to Buy from Neutral, establishing $200 target based on attractive valuation
- Shares have plummeted 41% year-to-date in 2026 and sit 58% below all-time peak
- Current valuation metrics show P/E of 18.1 and PEG ratio of 0.47
- Company completed $3.6 billion all-cash acquisition of Fin (previously Intercom)
- Institutional investors control 80.43% of shares, with multiple funds increasing stakes
Shares of Salesforce (CRM) are currently changing hands at $151.67, hovering just above the 52-week low of $149.80 following a steep 41% decline in 2026. This performance positions it as the second-weakest stock in Monness, Crespi, Hardt’s coverage portfolio.
Monness initiated an upgrade Wednesday, moving CRM from Neutral to Buy while assigning a $200 price objective. The investment firm highlighted the attractive valuation opportunity created by the significant downturn.
Salesforce has now retreated 58% from its peak levels reached in late 2024. When the rating revision was announced, shares were priced at $155.02, though they’ve continued to slide since then.
The fundamental data supports the value thesis. CRM’s current price-to-earnings multiple stands at 18.1, while the price-to-earnings-growth ratio sits at just 0.47. The enterprise maintains a robust gross profit margin of 77.6% alongside a 12% free cash flow yield.
Monness emphasized Salesforce’s strong cash generation capabilities, impressive margin structure, and the $25 billion share repurchase authorization approved in March as key factors supporting their bullish stance.
Strategic Fin Acquisition
Salesforce recently finalized an agreement to acquire Fin, the company previously operating as Intercom, in an all-cash transaction valued at $3.6 billion. Fin’s artificial intelligence agent technology automatically handles customer inquiries with a 76% success rate while delivering more than $400 million in annual recurring revenue.
The acquisition drew favorable reactions from multiple Wall Street firms. Jefferies maintained its Buy recommendation with a $250 price objective. Canaccord Genuity confirmed its Buy stance at $225. Stifel preserved its Buy rating alongside a $250 target. Wolfe Research continued its Outperform designation with a $220 objective.
UBS stood apart from the consensus, maintaining a Neutral position with a $185 price target while expressing reservations about the deal’s short-term benefits.
Financial Performance and Projections
During its latest quarterly report released on May 27, Salesforce delivered earnings per share of $3.88, surpassing the Street consensus of $3.13 by $0.75. Total revenue reached $11.13 billion, exceeding expectations of $11.05 billion and representing 13.3% year-over-year growth.
Management issued fiscal 2027 EPS guidance ranging from $14.06 to $14.12, with second-quarter 2027 projections between $3.25 and $3.27. The analyst community’s consensus forecast for the full year stands at $10.29 EPS.
Institutional activity remains robust. SG Trading Solutions established a fresh position valued at approximately $1.18 million. Temasek, Fisher Asset Management, and Van Eck Associates each expanded their existing holdings. Institutional investors and hedge funds collectively control 80.43% of outstanding shares.
Wall Street’s consensus price target currently stands at $257.61. Among 42 analysts tracking the stock, 26 recommend Buy, 12 suggest Hold, and 3 advise Sell. One analyst maintains a Strong Buy rating.
The company announced a quarterly dividend distribution of $0.44 per share, scheduled for payment on July 2, yielding 1.2% annually.
CRM’s 50-day moving average currently sits at $177.91, while the 200-day moving average rests at $204.72—both significantly above the current trading price.
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