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).

Here is a comprehensive Salesforce, Inc. (CRM) analysis with the requested price-target drawing, plus a deep-dive into fundamentals, earnings, technicals, and forward-looking price targets.

Note on price targets drawing

  • Horizontal lines drawn for:
    • Low Target: 221.00 (blue)
    • Median Target: 340.00 (orange)
    • High Target: 430.00 (green)
  • Extending 30 days into the future from today (2025-10-10) to 2025-11-09.
  • Ticker used: CRM

Executive Summary

  • Investment thesis: CRM sits at a business model with strong recurring software revenue, robust gross margins, and ongoing margin discipline. The stock trades with a relatively high trailing P/E, but a substantially lower forward P/E suggests substantial expected earnings growth or margin stabilization ahead. With a large, multinational client base and ongoing product expansion (including AI-enabled offerings), CRM remains a premier name in enterprise software.
  • Price outlook: Current price around 245.33, with credible upside implied by analyst targets (median 340, high 430). The stock trades near its 50-day average, with a neutral RSI and a modestly bullish MACD signal at times. The base-case target (3–12 months) sits in the 340–430 range, but a bear scenario around 221 remains a valid downside risk if growth slows or competitive dynamics intensify.

Fundamental Analysis

  • Key metrics (as provided)
    • Current price: 245.33
    • Market cap: 233.55B
    • Enterprise value: 225.33B
    • Trailing P/E: 35.66x
    • Forward P/E: 22.04x
    • P/B: 3.82x
    • Return on equity (ROE): 11.20%
    • Return on assets (ROA): 5.52%
    • Profit margins: 16.87%
    • Gross margins: 77.65%
    • Operating margins: 22.82%
    • Debt-to-equity: 19.26x
    • Total cash: 15.37B
    • Total debt: 11.81B
    • Dividend yield: 0.69%
    • Beta: 1.20
  • Observations
    • The forward multiple (P/E 22x) versus a lofty trailing multiple suggests expectations for meaningful earnings growth and/or margin expansion. The margin structure is strong (gross ~78%, operating ~23%), supporting profitability upside if mix shifts toward higher-margin products and efficiency gains.
    • Leverage remains modest (debt-to-equity ~19x), and cash position is sizable, reducing near-term liquidity risk.
    • The dividend yield is modest (0.69%), reflecting CRM’s software-growth profile rather than a cash-cow dividend strategy.
    • The beta (~1.2) implies the stock moves with market cycles, with a tilt toward growth risk-on environments.

Earnings Analysis

  • Recent earnings summary (selected figures)
    • Total Revenue (latest period): 10.236B
    • Net Income (continuing operations): 1.887B (latest period)
    • Diluted EPS: 1.96 (latest period)
    • Normalized EBITDA: 3.151B
    • EBITDA: 3.153B
    • Operating Income: 2.336B
    • Gross Profit: 7.994B
    • Cost of Revenue: 2.242B
    • Net Income (total): 1.887B
    • Diluted Avg Shares (diluted): 962M
  • EPS Trend (quarterly sequence)
    • 0q (latest quarter): 2.86033
    • +1q: 3.03723
    • 0y: 11.34838
    • +1y: 12.70128
    • Interpretation: The most recent quarter shows a solid EPS level, with a notable step up in the +1q figure suggesting positive momentum into the next quarter. The 0y and +1y figures indicate meaningful year-over-year growth when viewed as trailing annual figures, consistent with a company delivering acceleration in earnings, albeit at elevated absolute levels.
  • EPS Revisions (periods)
    • 0q: Up last7d 23, Up last30d 24, Down last30d 13, Down last7d 13
    • +1q: Up last7d 5, Up last30d 6, Down last30d 35, Down last7d 35
    • 0y: Up last7d 2, Up last30d 46, Down last30d 2, Down last7d 1
    • +1y: Up last7d 2, Up last30d 31, Down last30d 12, Down last7d 1
    • Interpretation: Near-term revisions for 0q show net upgrades (more ups than downs in the last 30 days), suggesting constructive sentiment for next quarter. The +1q revisions show heavier downgrades in recent 30 days, indicating some mixed sentiment in the more immediate horizon. The 0y and +1y revisions are generally skewed toward upgrades (especially 0y with 46 upgrades in 30 days), implying confidence in longer-horizon profitability and growth.

Technical Analysis

  • Price action and level context
    • Current price: 245.33
    • Price sits near the 50-day moving average, which has shown a range around 246 in recent readings. The latest 50-day MA values around late September/early October have hovered in the mid-240s to mid-250s, with the price frequently testing this level.
    • RSI (14) is in a neutral zone, recently around 48.2 (latest value 2025-10-09), implying neither overbought nor oversold conditions.
    • MACD (12,26,9): The latest reading shows MACD around -1.5 with Signal around -1.9, i.e., the MACD line currently sits above the signal line but in negative territory, suggesting modest bullish momentum within a longer-term bearish context.
  • Key supports/resistances (derived from price levels and moving averages)
    • Short-term support: around 240–245 region (near current price and near 50-day MA).
    • Intermediate resistance: around 260–270 region (recent intra-quarter peaks and the vicinity of the 50-day MA when momentum improves).
    • Longer-term resistances: 340 (Median target) and 430 (High target) act as psychological and technical benchmarks if momentum accelerates.

Analyst Consensus & Price Targets

  • Analyst coverage: 51 analysts
  • Current price: 245.33
  • Target High: 430.00
  • Target Low: 221.00
  • Target Median: 340.00
  • Target Mean: 334.87
  • Interpretation: The aggregate target range implies meaningful upside from today, with a median at 340 and a mean near 335. The high target of 430 indicates potential bull-case upside, while 221 reflects a downside scenario.

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

  • Short-Term (3 months): Target around 340 (median target)
    • Justification:
      • Near-term earnings momentum appears constructive: the latest quarter shows solid diluted EPS (2.86) with a positive step into the next quarter (3.04). The EPS trend data also show YoY growth in trailing annual figures (0y around 11.35, +1y around 12.70).
      • Analyst revisions for the near term show more upgrades than downgrades in the last 30–7 days for the 0q horizon, suggesting improving sentiment for the upcoming quarter.
      • Valuation reset: forward P/E of 22x supports a multiple expansion scenario if forward earnings rise, in line with the company’s margin profile (gross margins ~77.6%, operating margins ~22.8%).
    • Target: 340.00
    • Drivers: continued cloud software demand, AI-enabled product suite adoption, enterprise deal wins, margin stability, and potential buybacks or capital-light investments that preserve cash.
    • Risks: Macro softness in large enterprise IT spend, competitive pressure from major tech ecosystems, and potential margin headwinds if mix shifts toward lower-margin offerings.
  • Mid-Term (12 months): Target around 430 (high target)
    • Justification:
      • The high analyst target of 430 implies substantial upside if the company sustains revenue growth and expands margins, while benefiting from a higher multiple as earnings compound and the software cycle remains favorable.
      • The mean target (~335) vs. high target (~430) suggests there is room for multiple expansion if CRM continues to capture larger wallet share, accelerates AI-driven value, and secures durable FCF generation.
    • Target: 430.00
    • Drivers: robust enterprise penetration, larger logo mix, stronger cross-sell/up-sell within existing customers, continued cost discipline, and AI-driven product differentiators that lift margin.
    • Risks: Execution risk on faster-than-expected AI integration, potential ethat-laden customer concentration risk, and competition that could compress margins or cap ARR growth.
  • Long-Term (3+ years): Bear-case / downside scenario around 221
    • Justification:
      • The 3+ year horizon could carry higher uncertainty given CRM’s high growth expectations and valuation sensitivity to earnings beats. A sharp deceleration in enterprise IT budgets, macro downturn, and intensified competition could compress multiples and cap earnings growth.
      • The 221 target provides a downside scenario to illustrate risk if growth fails to meet elevated expectations or if profitability lags.
    • Target: 221.00
    • Drivers: slower growth, revenue concentration risk, higher competitive pressures (e.g., SAP, Oracle, Microsoft, and emerging AI-native platforms), and macro shocks that reduce IT discretionary spend.
    • Risks: structural margin compression, longer sales cycles, and potential changes in capital allocation that dampen returns.

Key Risks & Opportunities

  • Risks
    • Valuation risk: current trailing multiples are elevated; material earnings disappointment or slower-than-expected AI monetization could pressure valuation.
    • Competitive threats: intensified competition in CRM, ERP, and AI-enabled solutions from hyperscalers and best-of-breed SaaS players.
    • Macro sensitivity: enterprise IT spend can be cyclical, especially in enterprise software categories that CRM dominates.
  • Opportunities
    • AI and data-enabled product suite: ongoing AI integration could drive higher ARR and improve cross-sell opportunities.
    • Margin expansion: optimization in operating expense, better revenue mix, and scale benefits can sustain healthy margins.
    • Large enterprise wins: continued adoption by large-scale customers can drive durable revenue growth and justify multiple expansion.

Investment Recommendation

  • Overall stance: Hold
  • Time horizon: 12–24 months
  • Rationale: The consensus price targets imply meaningful upside from current levels, with a realistic base-case around the 340 area and a bull-case around 430 if CRM executes well on AI enhancements and enterprise expansion. However, the near-term share price remains sensitive to earnings revisions (mixed near-term sentiment), macro IT spending dynamics, and valuation risk. A holding stance allows investors to participate in potential upside while monitoring for confirmation signals (e.g., sustained EPS growth, margin resilience, and AI product adoption rates).
  • Expected return potential (12–24 months): Base-case potential in the high-teens to low-twenties percentage if CRM converges toward the median analyst target (~340) and demonstrates margin stability. Upside to the high target (~430) is plausible if earnings acceleration and multiple expansion occur. Bear-case downside around ~221 remains if growth decelerates or multiple compression occurs.

Summary of Data Tables (selected metrics)

  • Key Metrics
    • Current price: 245.33
    • Market cap: 233.55B
    • EV: 225.33B
    • Trailing P/E: 35.66x
    • Forward P/E: 22.04x
    • P/B: 3.82x
    • ROE: 11.20%
    • ROA: 5.52%
    • Profit margin: 16.87%
    • Gross margin: 77.65%
    • Operating margin: 22.82%
    • Debt/Equity: 19.26x
    • Total cash: 15.37B
    • Total debt: 11.81B
    • Dividend yield: 0.69%
    • Beta: 1.20
  • Analyst Targets
    • Current price: 245.33
    • Number of analysts: 51
    • Target Low: 221.00
    • Target Median: 340.00
    • Target High: 430.00
    • Target Mean: 334.87

Selected Earnings and Trend Tables (condensed)

  • Recent Earnings Summary (selected figures)
    • Total Revenue: 10.236B (latest), prior periods around 9.829B–9.993B
    • Net Income (continuing operations): 1.887B (latest)
    • Diluted EPS: 1.96 (latest)
    • Normalized EBITDA: 3.151B (latest)
    • Operating Income: 2.336B (latest)
    • Gross Profit: 7.994B (latest)
  • EPS Trend (periods)
    • 0q: 2.86033 (current)
    • +1q: 3.03723
    • 0y: 11.34838
    • +1y: 12.70128
  • EPS Revisions (periods)
    • 0q: Up7d 23, Up30d 24, Down30d 13, Down7d 13
    • +1q: Up7d 5, Up30d 6, Down30d 35, Down7d 35
    • 0y: Up7d 2, Up30d 46, Down30d 2, Down7d 1
    • +1y: Up7d 2, Up30d 31, Down30d 12, Down7d 1

Technical Indicators (highlights)

  • 50-day moving average (recent): around 246 (latest values show MA ~246–247)
  • RSI (14): around 48 (late-September to early-October)
  • MACD (12,26,9): Latest MACD around -1.5; Signal around -1.9 (MACD above signal; still negative, indicating cautious near-term momentum)
  • Interpretation: The stock trades near the 50-day MA with neutral RSI, showing a mixed near-term setup but the potential for upside if earnings growth accelerates and sentiment improves.

Appendix: Price Target Line References

  • Low Target: 221
  • Median Target: 340
  • High Target: 430
  • Lines extended from 2025-10-10 to 2025-11-09 on CRM chart

If you’d like, I can:

  • Export these findings into a concise one-page report or a slide-ready deck.
  • Add scenario-specific tables (bear/base/bull case) with probability-weighted price targets.
  • Pull in any alternative data (e.g., ARR growth, customer concentration) for deeper diligence.
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