JPMorgan Boosts Salesforce to 'Overweight' on Attractive Valuation

JPMorgan has upgraded Salesforce (CRM.US) from 'Not Rated' to 'Overweight', citing its attractive valuation and limited AI-related risks. The firm set a December 2027 price target of $250.

The analyst team led by Samik Chatterjee stated that their bullish view on the company is based on the expectation that its core business will accelerate growth in the second half of fiscal year 2027, which ends January 2027. They also believe that the impact of enterprises adopting cutting-edge AI models and shifts in the competitive landscape should be confined to a relatively small portion of its operations.

Salesforce's current valuation appears undervalued, as the stock price has already priced in expectations of further growth deceleration and deteriorating fundamentals. Analysts emphasize that Salesforce's shares are undervalued, yet it boasts near-double-digit revenue growth, industry-leading margins, and a firmly established position in the enterprise customer relationship management (CRM) market.