DA Davidson Raises Salesforce Price Target to $225 Amid Healthy Earnings Growth
Analyst Gil Luria of DA Davidson raised his price target for Salesforce (CRM) stock to $225 from $200, while maintaining a Neutral rating. This new target reflects a multiple of 14 times the firm's fiscal 2028 earnings per share estimate.
The analyst attended Dreamforce 2023 and met with system integrators, partners, and customers, gaining insights into Salesforce's strategy. Luria noted that despite some caution about organic reacceleration, the company is expected to continue growing at a healthy clip due to cost synergies from recent deals.
InvestingPro data suggests that the current stock price of $250.54 is undervalued compared to its Fair Value analysis. Salesforce's profitability metrics are impressive, with a gross profit margin of 77% and a PEG ratio of just 0.38.