Salesforce (CRM) Stock Forecast & Price Target

Salesforce is facing criticism for not making enough investment into its AI capabilities, as customers and partners have said that it's not there yet and are seeing CIOs deprioritizing the company in their IT budgets. This was reflected in Salesforce's 1H26 CIO survey, as its priority spending plans saw a steep decline and its estimated organic CC current bookings fell to 0.0% growth in 1Q27. Additionally, Salesforce has also faced employee retention challenges, with senior employees leaving for AI-native companies. Despite these challenges, the acquisition of Fin (f/k/a Intercom) for $3.6B is seen as a positive move for Salesforce to gain AI capabilities and accelerate its Agentforce360 strategy, as Fin is showing strong market validation with its accelerating growth. This deal is expected to close in Salesforce's fiscal 4Q and is not expected to have a negative impact on its capital return program. Overall, with a current valuation of 3.7x EV/NTM recurring revenue, we believe Salesforce's stock is undervalued and offers an attractive entry point for investors.

Salesforce is facing multiple challenges, including weak feedback and momentum, negative survey results, and a slowdown in revenue growth. The company's customer relationship management technology faces competition and pricing pressures, and its recent acquisition of Fin, while attempting to bolster its Agentforce use case, is seen as overpriced. These factors lead to a reduction in earnings estimates, a sector weight rating, and the removal of its price target.