Cantor Fitzgerald initiates Salesforce stock with overweight rating

On Tuesday, Cantor Fitzgerald analysts initiated coverage on Salesforce stock (NYSE: NYSE:CRM) with an Overweight rating. The analysts set a price target of $325, reflecting their positive outlook on the company’s growth prospects and financial performance. This adds to the strong analyst sentiment, with InvestingPro data showing 33 analysts recently revising their earnings estimates upward for the $250 billion market cap company.

The analysts believe that Salesforce remains one of the highest-quality businesses within their coverage, despite a slowdown in growth. They anticipate that Salesforce’s stock, currently trading at 17 times their CY26 free cash flow estimate, will see multiple expansion. The price target of $325 assumes a 21 times multiple of the same estimate. According to InvestingPro analysis, the company maintains impressive gross profit margins of 77.3% and currently trades below its Fair Value, suggesting potential upside opportunity despite trading at a P/E ratio of 40.5x.

Salesforce’s innovation, particularly with its Agentforce platform, is highlighted as a key factor in maintaining its position as a leading CRM platform. The analysts suggest that while direct monetization of Agentforce may take time, it is expected to help mitigate churn and fend off potential disruptors. The Data Cloud is also noted as an important growth driver as customers adopt Agentforce.

The analysts also address Salesforce’s margins and capital allocation. While Salesforce’s operating margins lag behind peers, they have improved significantly, with management guiding to 34% for FY26 (CY25), compared to a 37% average among peers. The analysts view Salesforce’s combination of margin expansion, a shareholder-friendly capital allocation approach, and a reasonable valuation as an attractive investment opportunity. InvestingPro rates Salesforce’s overall financial health as GREAT, with particularly strong scores in growth and profitability. For deeper insights into Salesforce’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, Salesforce has been the focus of multiple analyst assessments following its first-quarter fiscal year 2026 results. Truist Securities maintained a Buy rating with a $400 price target, expressing confidence in Salesforce’s potential to exceed fiscal year estimates and highlighting the company’s operational leverage and traction among small and mid-sized businesses. Stifel analysts also reiterated a Buy rating with a $375 target, noting Salesforce’s Data and AI business as crucial for long-term growth and emphasizing the benefits of its impending acquisition of Informatica. Meanwhile, Stephens adjusted its price target slightly to $309 from $311, maintaining an Equal Weight rating while highlighting Salesforce’s initiatives and focus on customer success.

Morgan Stanley (NYSE:MS) maintained an Overweight rating with a $404 target, addressing concerns about Salesforce’s core performance and margins but acknowledging the company’s commitment to margin improvement. CFRA analyst Aaron Siegel reiterated a Strong Buy rating with a $375 target, citing Salesforce’s potential to meet or exceed revenue expectations and noting a favorable currency environment. Salesforce’s recent performance has been in line with expectations, with improvements in bookings and positive traction from its Agentforce and Data Cloud products. These developments reflect ongoing confidence among analysts in Salesforce’s strategy and growth potential.

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