Cowen Raises Salesforce Price Target to $280 Amid AI Growth Confidence
TD Cowen has raised its price target for Salesforce (NYSE:CRM) to $280 from $240, while maintaining a Buy rating. The current stock price is $247.60, which some analysts consider undervalued.
The firm noted that Salesforce's second-quarter organic subscription revenue growth came in below expectations at around 6% on a constant currency basis. However, the analyst pointed out that the company's assumptions for acceleration in the second half of the year remain intact.
TD Cowen highlighted AI annual recurring revenue exceeding estimates for the second consecutive quarter and a stronger current remaining performance obligation print and guidance. A new partnership with Anthropic is also seen as having potential to change the trajectory for the company.