Salesforce, Inc. Stock Price Targets

Comprehensive analysis of short, mid, and long-term price targets for Salesforce, Inc. (CRM).

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Give me a comprehensive price target analysis for Salesforce, Inc. (CRM).

Horizontal price level drawings completed.

  • Low Target line drawn at 221.00 (color: #2ECC71) from 2025-10-07 to 2025-11-06
  • Median Target line drawn at 340.00 (color: #F1C40F) from 2025-10-07 to 2025-11-06
  • High Target line drawn at 430.00 (color: #E74C3C) from 2025-10-07 to 2025-11-06

Executive Summary

  • Salesforce, Inc. (CRM) trades around 245.78 with a forward P/E of ~22.1 and a price-to-book of ~3.83, supported by a robust balance sheet (net cash position, sizable total cash vs. total debt) and healthy margins.
  • Analysts lay out a wide target range (Low 221, Median 340, High 430) with a mean target of ~334.87 and 51 analysts covering the stock. Current price sits above the Low target but below the Median, implying potential upside if consensus targets are realized.
  • Key near-term catalysts include continued subscription revenue growth, margin expansion, and AI-enabled product enhancements; overhangs include valuation risk and competitive pressure in a large enterprise SaaS landscape.

Fundamental Analysis

  • Valuation and Capital Structure
    • Market Cap: 233.98B; Enterprise Value: 225.26B
    • Trailing P/E: 35.78; Forward P/E: 22.08
    • Price to Book: 3.83; Return on Equity: 11.2%; Return on Assets: 5.5%
    • Debt to Equity: 19.26% (modest leverage vs. cash-rich balance sheet)
    • Total Cash: 15.37B; Total Debt: 11.81B; Net Cash: ~3.56B
    • Dividend Yield: 0.69% (historical)
    • Beta: 1.20 (moderately higher market sensitivity)
  • Financial Health Indicators
    • Gross Margin: ~77.6%; Operating Margin: ~22.8%; Net Profit Margin: ~16.9%
    • The company shows solid profitability with ample operating leverage from its subscription-centric model, supported by a strong cash position relative to debt.

Earnings Analysis

  • Recent Earnings Summary (selected quarters)
    • 2025-07-31: Total Revenue 10.236B; Net Income 1.887B; Diluted EPS 1.96; EBITDA 3.153B; Operating Income 2.336B
    • 2025-04-30: Total Revenue 9.829B; Net Income 1.541B; Diluted EPS 1.59; EBITDA 2.821B; Operating Income 1.978B
    • 2025-01-31: Total Revenue 9.993B; Net Income 1.708B; Diluted EPS 1.75; EBITDA 2.995B; Operating Income 2.118B
    • 2024-10-31: Total Revenue 9.444B; Net Income 1.527B; Diluted EPS 1.58; EBITDA 2.763B; Operating Income 1.949B
    • 2024-07-31: Total Revenue 9.325B; Net Income 1.429B; Diluted EPS 1.47; EBITDA 2.789B; Operating Income 1.882B
  • EPS Trend
    • Current 0q EPS: 2.86011; +1q: 3.03995
    • 0y (year-ago quarter) EPS: 11.3469; +1y: 12.69564
    • Interpretation: The dataset shows a rising trailing-quarter EPS from 0q to +1q, with year-over-year EPS figures showing growth (0y to +1y). This suggests improving quarterly profitability and favorable year-over-year momentum in the most recent quarters.
  • EPS Revisions (Analyst sentiment)
    • 0q: Up Last 7 Days: 23; Up Last 30 Days: 24; Down Last 30 Days: 13; Down Last 7 Days: 13
    • +1q: Up Last 7 Days: 5; Up Last 30 Days: 6; Down Last 30 Days: 35; Down Last 7 Days: 35
    • 0y: Up Last 7 Days: 2; Up Last 30 Days: 46; Down Last 30 Days: 2; Down Last 7 Days: 1
    • +1y: Up Last 7 Days: 2; Up Last 30 Days: 31; Down Last 30 Days: 12; Down Last 7 Days: 1
    • Interpretation: Near-term revisions (0q) tilt positive, while longer-horizon revisions (+1q, +1y) show more mixed or negative signals in recent periods. Overall, near-term sentiment remains tilted modestly positive, but there are pockets of downward revisions for longer horizons.
  • Earnings Quality
    • Revenue growth observed across recent quarters corroborates earnings expansion, with margins remaining healthy (gross ~77.6%, operating ~22.8%), indicating sustainable profitability with ongoing investment in R&D and GTM initiatives.

Technical Analysis

  • Price Action and Trendlines
    • The current price is 245.78, with the chart reflecting price near but slightly below the 50-day moving average in recent data, indicating a touch of near-term consolidation.
  • Moving Averages
    • 50-day MA has trended down from roughly 270 in mid-July to around the mid-240s by early October, aligning with a move from overbought levels toward equilibrium rather than a clear uptrend.
  • RSI (14)
    • RSI as of the latest data is ~57.5, pointing to modest bullish momentum but not overbought territory.
  • MACD (12,26,9)
    • MACD around -1.9 with Signal around -2.0, i.e., negative momentum, though the gap to the signal line is narrow, suggesting a potential near-term cross if momentum improves.

Analyst Consensus & Price Targets

  • Current analyst price targets: Low 221.00, Median 340.00, High 430.00
  • Current price: 245.78
  • Number of analysts: 51
  • Target Mean Price: 334.87
  • Interpretation: A broad buy-side breadth exists, with the median target significantly above current price. The mean target (~334.87) suggests a ~36% upside, while the median implies ~38% upside. The high case envisions a roughly 75% upside, reflecting confidence in CRM’s long-term growth profile but with higher downside risk if execution or competitive pressures intensify.

Price Target Analysis (Short, Mid, Long-Term)

  • Short-Term (3 months): Target ~334.87 (mean) or ~340 (median) depending on the metric used
    • Justification: Near-term earnings momentum combined with positive near-term EPS revisions and a favorable mix (subscription revenue, gross margins) may drive multiple expansion. The stock trades below the mean/median consensus, creating a favorable setup for a continued re-rating as earnings deliver.
    • Key drivers: continued CRM platform adoption, strong ARR growth, ongoing AI-enabled product enhancements, upside from cost control and efficiency gains.
  • Mid-Term (12 months): Target ~340 (median)
    • Justification: The 12-month horizon aligns with continued revenue growth, margin stability, and a robust balance sheet. The median target represents a realistic path given consensus sentiment and CRM’s long-term competitive advantages in the enterprise SaaS space.
    • Key drivers: sustained subscription growth, cross-sell/upsell within existing customers, international expansion, ongoing margin discipline, and strategic product integrations.
  • Long-Term (3+ years): Target ~430 (high)
    • Justification: This is the high-end bull case reflecting durable, high-visibility revenue growth, expanded operating leverage, and CRM’s potential to monetize AI and data-driven value across its customer base. Macro tailwinds for cloud adoption and CRM’s platform strategy could drive outsized upside if execution remains strong.
    • Key drivers: AI-enabled product leadership, higher adoption of Platform/Data/Commerce solutions, expansion into adjacent markets (data/analytics, developer ecosystem), and durable gross margin expansion with scale.
  • Absolute price targets vs current price (CRM 2025-10-07)
    • Current price: 245.78
    • Target Low (221): modest downside risk relative to current price
    • Target Median (340): upside ~38%
    • Target High (430): upside ~75%
    • Implication: A balanced risk-reward that favors modest upside in the base case with meaningful upside in the high-case scenario, given CRM’s strong margins and cash position.

Key Risks & Opportunities

  • Key Risks
    • Valuation: Forward P/E of ~22 vs. growth prospects could compress if revenue growth slows or if competition intensifies.
    • Macro/Tech Spending: Enterprise IT budgets are sensitive to macro conditions; a more cautious environment could pressure new subscription deals.
    • Competitive Landscape: Competition from other CRM and enterprise software platforms could pressure pricing and customer retention.
  • Key Opportunities
    • AI & Platform Leverage: CRM’s AI capabilities and platform breadth could drive higher ARPU and cross-sell opportunities.
    • Margin Expansion: Ongoing efficiency gains and scale should improve operating margins over time.
    • Global Expansion: Increased penetration in international markets could unlock additional ARR growth.

Investment Recommendation

  • Recommendation: BUY (over a 12–24 month horizon)
    • Time Horizon: 12–24 months
    • Expected Return Potential: Approximately 35–75% upside depending on which target is realized (mean/median vs. high-case)
    • Rationale: The stock trades below the consensus mean/median targets, and CRM’s durable margins, strong cash position, and addressable AI-enabled growth opportunities support a constructive longer-term thesis. However, the upside is contingent on continued execution and favorable market dynamics given the current valuation.
    • Suggested Stance: Use a core exposure with a measured-add-on approach on weakness, guided by earnings progression and revised analyst sentiment.

Notes on Data Sources (Key References)

  • Price targets and consensus: Target Low 221, Median 340, High 430; Current 245.78; Number of Analysts 51; Target Mean 334.87
  • Fundamentals: Market Cap 233.98B; EV 225.26B; Trailing P/E 35.78; Forward P/E 22.08; P/B 3.83; ROE 11.2%; ROA 5.5%; Profit Margin 16.9%; Gross Margin 77.6%; Operating Margin 22.8%; Debt/Equity 19.26%; Total Cash 15.37B; Total Debt 11.81B; Net Cash ~3.56B; Dividend Yield 0.69%; Beta 1.20
  • Earnings Summary (quarters)
    • 2025-07-31: Revenue 10.236B; Net Income 1.887B; Diluted EPS 1.96; EBITDA 3.153B; Operating Income 2.336B
    • 2025-04-30: Revenue 9.829B; Net Income 1.541B; Diluted EPS 1.59; EBITDA 2.821B; Operating Income 1.978B
    • 2025-01-31: Revenue 9.993B; Net Income 1.708B; Diluted EPS 1.75; EBITDA 2.995B; Operating Income 2.118B
    • 2024-10-31: Revenue 9.444B; Net Income 1.527B; Diluted EPS 1.58; EBITDA 2.763B; Operating Income 1.949B
    • 2024-07-31: Revenue 9.325B; Net Income 1.429B; Diluted EPS 1.47; EBITDA 2.789B; Operating Income 1.882B
  • EPS Trend and Revisions
    • 0q EPS: 2.86011; +1q: 3.03995; 0y: 11.3469; +1y: 12.6956
    • EPS revisions show near-term positives (0q revisions favorable) but longer-horizon revisions show more mixed/negative signals in some periods, indicating cautious near-term sentiment despite positive quarterly trends.

Appendix: Horizontal Trendlines (Summary)

  • Low Target: 221.00 (color: #2ECC71) - Near-term support/target
  • Median Target: 340.00 (color: #F1C40F) - Central consensus target
  • High Target: 430.00 (color: #E74C3C) - Bullish high-case target
  • These lines extend 30 days into the future from 2025-10-07, visually marking key resistance/support/target levels on the chart.

If you’d like, I can add a more granular sensitivity analysis (e.g., upside under alternative analyst target scenarios, or a probability-weighted target path based on revisions and earnings trajectory).

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