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Investing.com - Oppenheimer has reduced its price target on salesforce.com (NYSE:CRM) to $300.00 from $315.00 while maintaining an Outperform rating on the stock. The new target aligns closely with InvestingPro’s Fair Value assessment, suggesting Salesforce remains undervalued at its current price of $230.54, which is trading near its 52-week low of $221.96.
The firm cited lower group multiples as the reason for the price target reduction, though it remains positive on the company’s long-term prospects as it transitions to Agentforce. This optimism is supported by Salesforce’s perfect Piotroski Score of 9, indicating exceptional financial strength.
Oppenheimer expressed comfort with its current estimates, pointing to pricing benefits, strong momentum in Agentforce and Data Cloud, and normal end-of-year seasonality indicated by fourth-quarter customer and IT spending surveys. Investors should note that Salesforce is scheduled to report earnings in just 2 days on December 3, which could provide further clarity on these trends.
The research firm views Salesforce as "a business in transition to Agentforce" and believes the company "should be a winner in the AI transition" due to its data advantages from the breadth and richness of its customer data.
Oppenheimer also highlighted continued margin growth and noted that the closing of the Informatica deal removes an overhang, while an 8% free cash flow yield limits further downside risk for the stock. InvestingPro data confirms Salesforce’s impressive 77.65% gross profit margins and reveals a 6% free cash flow yield, supporting this assessment. For deeper insights and comprehensive analysis, check out the Pro Research Report available for Salesforce, one of 1,400+ top stocks covered in detail.
In other recent news, Salesforce has completed its acquisition of Informatica for approximately $8.3 billion in cash, ahead of the initially projected early fiscal year 2027 closure. This acquisition is expected to enhance Salesforce’s data foundation for artificial intelligence applications by integrating Informatica’s capabilities into its Agentforce 360 platform. Meanwhile, Mizuho has reiterated its Outperform rating on Salesforce with a $340 price target, highlighting the company’s strategic move to boost its AI capabilities through this acquisition. KeyBanc also maintains its Overweight rating with a $400 price target, noting positive performance in Salesforce’s small and medium-sized business segment. Cantor Fitzgerald has reiterated its Overweight rating as well, setting a $325 price target, and reports that most Salesforce partners are meeting their financial goals. These developments underscore the company’s ongoing efforts to strengthen its market position and technological offerings. Informatica, on the other hand, has announced a partnership with Microsoft to integrate its Intelligent Data Management Cloud platform with Microsoft Foundry, aiming to enhance AI agent deployment for enterprises.
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