Salesforce (CRM): Analysts' Ratings Highlight Decline in Price Target

Salesforce (CRM) received a "Buy" rating from B of A Securities with a lowered price target from $350 to $325, a 7.14% decrease. Analysts have issued mixed ratings, with Barclays maintaining an "Overweight" rating and DA Davidson upgrading from "Underperform" to "Neutral." The average one-year price target is $348.18, implying a 43.14% upside from the current price of $243.25.

Salesforce (CRM) received a "Buy" rating from B of A Securities on August 26, 2025, with a lowered price target from $350 to $325, marking a 7.14% decrease [1]. This move follows a series of mixed ratings from other analysts, reflecting a cautious approach to the company's AI-driven transformation and integration challenges.

On August 18, 2025, Barclays analyst Raimo Lenschow maintained an "Overweight" rating but lowered the price target from $347 to $316, a decrease of 8.93% [1]. Meanwhile, DA Davidson analyst Gil Luria upgraded the rating from "Underperform" to "Neutral" with an unchanged price target of $225 [1]. These ratings highlight the varying opinions among analysts about Salesforce's potential.

The average one-year price target for Salesforce, based on 49 analysts, is $348.18, suggesting an upside of 43.14% from the current price of $243.25 [1]. This average target implies a significant potential gain, but it is important to note that the range of estimates varies widely, from $225 to $442 [1].

Salesforce's recent performance and strategic initiatives have sparked mixed sentiment. The company's Q1 2026 revenue hit $9.83 billion, up 8% year-over-year, with a non-GAAP operating margin of 32.3% [3]. However, the integration of the $8 billion Informatica acquisition and the acceleration of AI adoption remain key challenges. The $430 price target hinges on these factors, with analysts projecting a 25.22% upside to the current price of $243.25 [3].

In conclusion, Salesforce's journey to a $430 target is fraught with execution risks, including AI adoption, M&A integration, and segment revitalization. While the company's AI and data platforms are innovative, the path to this valuation is challenging. For investors with a long-term horizon, the current valuation offers an attractive entry point, provided they are willing to weather near-term volatility.

References:
[1] https://www.gurufocus.com/news/3080086/salesforce-crm-todays-analyst-ratings-highlight-crm-stock-news
[2] https://finance.yahoo.com/news/barclays-lowers-salesforce-crm-price-225224473.html
[3] https://www.ainvest.com/news/salesforce-crm-navigating-ai-disruption-overhead-430-price-target-justified-2508/