Salesforce Stock: Evaluating Valuation After Recent Market Sentiment Shift

Salesforce shares have fallen 2% after a challenging stretch for the cloud software giant, with returns under pressure over the past quarter. Despite this, the long-term picture shows sizable gains, with a 70% total return over three years. Analysts expect Salesforce to trade at $335, a significant gap from its current price of $239.74, driven by multi-year growth drivers.

Salesforce shares (NYSE: CRM) have fallen 2% after a challenging quarter for the cloud software giant, with returns under pressure over the past quarter. Despite this recent setback, the long-term picture remains positive, with a 70% total return over the past three years. Analysts continue to maintain a bullish outlook, with expectations for Salesforce to trade at $335, a significant gap from its current price of $239.74.

The recent decline in Salesforce shares can be attributed to several factors. The company faced an underwhelming first half of the year, which led to a decrease in investor interest. Additionally, uncertainty around the growth and timing of AI and Agentforce adoption has contributed to the stock's volatility. However, Truist Securities has reiterated its Buy rating and $400.00 price target on Salesforce stock, highlighting potential catalysts that could improve investor sentiment Truist Securities reiterates Buy rating on Salesforce stock ahead of Dreamforce^[1].

Truist Securities acknowledges that some investors have labeled Salesforce a "value trap," but the firm remains confident that AI and data products will drive improved bookings in the second half and better growth prospects into fiscal year 2027 and beyond. The upcoming Dreamforce conference in mid-October could either accentuate negativity on the stock or help improve sentiment at the margin, with Truist leaning toward the latter outcome Truist Securities reiterates Buy rating on Salesforce stock ahead of Dreamforce^[1].

The recent performance of Salesforce shares has been mixed. After an early September sell-off, CRM shares closed at $235.69 on Oct 1, 2025, hitting multi-month lows. However, over the past week, the stock showed signs of stability, oscillating in the mid-$230s. By mid-day Oct 6, shares traded around $241, modestly higher than last week’s close Salesforce’s October 2025 Stock Check: AI Ambitions, New Risks, and What’s Next for CRM Investors^[3].

Despite the recent volatility, Salesforce remains the leading CRM platform globally with a market share of roughly 24%. The company generated $10.2 billion in revenue last quarter, representing a 10% year-over-year increase. Salesforce is on track for ~$41B revenue in FY2025 and is expected to reach $51.9 billion in revenue by 2028 Salesforce’s October 2025 Stock Check: AI Ambitions, New Risks, and What’s Next for CRM Investors^[3].

Analysts have maintained their optimistic outlook despite the recent stock price decline. CFRA lowered its price target for Salesforce to $300 from $375, citing a valuation based on a price-to-earnings ratio of 21.3 times its 2027 earnings per share estimate. However, TD Cowen reiterated a Buy rating with a $335 price target, and JMP Securities maintained a Market Outperform rating for Salesforce, setting a price target of $430 Truist Securities reiterates Buy rating on Salesforce stock ahead of Dreamforce^[1].

The partnership with Perficient announced in October 2025 aims to advance AI-driven enterprise solutions and modernize CRM using technologies such as Agentforce and Data Cloud. This collaboration extends joint AI and automation offerings to clients and signals confidence in the technology's impact How Will Salesforce (CRM) and Perficient’s AI Push Shape Long-Term CRM Innovation?^[2].

In conclusion, while Salesforce shares have fallen 2% in recent weeks, the long-term outlook remains positive. Analysts continue to maintain a bullish outlook, with expectations for significant growth driven by multi-year drivers. The upcoming Dreamforce conference and ongoing AI partnerships are expected to provide further catalysts for renewed investor sentiment.