Salesforce, Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Salesforce, Inc. (CRM).
Give me a comprehensive price target analysis for Salesforce, Inc. (CRM).
I have successfully plotted the horizontal trendlines for Salesforce, Inc. (CRM) at the specified low, median, and high price targets, extending 30 days into the future:
- Low Target: $225.00 (green support line)
- Median Target: $350.00 (blue resistance/support line)
- High Target: $440.00 (red resistance line)
Executive Summary
Salesforce exhibits a robust valuation with strong revenue streams and solid fundamentals. The current market price of approximately $245.83 suggests potential upside toward the median target of $350, with significant long-term growth potential approaching $440. Near-term momentum appears subdued, but technical indicators and analyst sentiment support a positive outlook over the medium and long term.
Fundamental Analysis
| Metric | Value |
|---|---|
| Market Cap | ~$235 billion |
| Enterprise Value | ~$230 billion |
| Trailing P/E | 38.53 |
| Forward P/E | 22.09 |
| Price to Book | 3.88 |
| Return on Equity | 10.3% |
| Gross Margins | 77.3% |
| Operating Margins | 20.1% |
| Debt/Equity | 19.8% |
| Total Cash | ~$17.4 billion |
| Total Debt | ~$12 billion |
| Dividend Yield | 0.68% |
| Beta | 1.37 |
Valuations indicate a premium reflect complex growth expectations, but manageable debt levels and strong margins suggest financial health.
Earnings Analysis
- Recent performance: Consistent net income (~$1.55 billion) with EPS of approximately $1.59.
- EPS Trends: Steady upward trend over the past year, with the current EPS (~$2.78) near the 1-year high.
- Revisions: Unanimous upward revisions over the last 30 days indicate bullish analyst sentiment.
- Quality: Revenue growth (~$9.83 billion) and stable profit margins suggest earnings sustainability.
Technical Analysis
- Price Action: Recently consolidated near current levels (~$245.83).
- Moving Average (50-day): Slightly above current price (~$266.7), indicating recent softness.
- RSI: Around 44.9, indicating neither overbought nor oversold conditions.
- MACD: Slightly negative but showing signs of convergence, implying potential bullish crossover.
Analyst Consensus & Price Targets
| Source | Price Target | Number of Analysts |
|---|---|---|
| Low | $225 | N/A |
| Median | $350 | 51 |
| High | $440 | N/A |
The median target offers approximately 42.5% upside from current levels, with high confidence in medium-term growth.
Price Target Analysis
- Short-Term (3 Months): Expectation of stabilization around current levels with potential upward bias; price may gravitate toward $350 driven by earnings and sentiment.
- Mid-Term (12 Months): With continued revenue growth and reforms, CRM could approach or surpass the median target of $350, especially if technical momentum improves.
- Long-Term (3+ Years): Long-term drivers include cloud adoption, product diversification, and global expansion, supporting a potential approach to the high target of $440, representing over 78% upside from today's price.
Key Risks & Opportunities
Risks:
- Economic downturn affecting IT and cloud spending.
- Intensified competition from peers.
- Execution risks in growth initiatives.
Opportunities:
- Continued SaaS adoption.
- Expansion into emerging markets.
- Strategic acquisitions boosting capabilities.
Investment Recommendation
Hold with a medium-term horizon (12-24 months). The stock is well-positioned for substantial appreciation, especially toward the $350-$440 range, contingent on continued growth delivery and market conditions. Expected returns could range approximately 40-78%, aligned with analyst targets.
Please let me know if you'd like further insights or a different analysis perspective.