Salesforce Stock (CRM) Faces Price Target Cut Despite AI Optimism

Stifel analyst J. Parker Lane lowered Salesforce's (CRM) price target to $325 from $375, but maintained a Buy rating. Lane is concerned about near-term performance, but remains optimistic about Salesforce's future in AI. CRM stock was up about 2% on Wednesday. The analyst expects clearer near-term execution and better results from Salesforce's Data + AI segment to justify a higher valuation.

Stifel Nicolaus analyst J. Parker Lane has reduced Salesforce's (CRM) price target from $375 to $325, while maintaining a "buy" rating. The analyst expressed concerns about near-term performance but remains optimistic about Salesforce's long-term prospects, particularly in the AI-driven Data + AI segment [1].

On Wednesday, CRM stock was up approximately 2% following the announcement. Lane expects clearer near-term execution and better results from Salesforce's Data + AI segment to justify a higher valuation. The analyst's concern about near-term performance could be due to recent market trends, such as Salesforce's 6% share price dip amidst broader market growth, and the company's transition to new pricing models [2].

Salesforce's current share price of $231.66 represents a significant discount to the consensus price target of $349.411, suggesting potential upside if the company can capitalize on its strategic initiatives while mitigating risks. The company's recent partnership with NiCE to integrate AI-driven services into its Service Cloud and collaboration with Sprout Social to enhance social media management capabilities are examples of Salesforce's efforts to leverage new technologies for growth [2].

Despite Lane's concerns, Salesforce's long-term narrative remains promising. Over the past three years, the company's total shareholder return was 23.26%, reflecting solid performance. However, over the past year, the company underperformed both the US market and the US Software industry, which may indicate short-term challenges or market sentiment that hasn't yet recognized the potential long-term benefits of recent strategic initiatives [2].

Investors should weigh these dynamics when evaluating Salesforce's future performance. The recent news may influence revenue and earnings forecasts by potentially enhancing revenue streams through integrated AI-driven services. However, the immediate impact on financial projections may be muted given existing risks such as economic headwinds and competitive pressures.

References:

[1] https://www.marketbeat.com/instant-alerts/salesforce-nysecrm-given-new-32500-price-target-at-stifel-nicolaus-2025-08-13/
[2] https://simplywall.st/stocks/us/software/nyse-crm/salesforce/news/salesforce-crm-expands-ai-driven-customer-experiences-through