JPMorgan Sees Salesforce as Undervalued Despite AI Concerns

JPMorgan has initiated coverage of Salesforce CRM with an Overweight rating and a price target of $250 for December 2027, representing about 29% upside from current levels. The bank believes investors have pushed concerns about artificial intelligence and slowing growth too far.

Analyst Samik Chatterjee thinks the stock already reflects expectations for continued growth deterioration, leaving room for a rerating if Salesforce's core business stabilizes. Central to JPMorgan's thesis is Salesforce's long-term Rule of 50 ambition, which combines revenue growth and profitability.

JPMorgan expects underlying business momentum to improve during the second half of fiscal 2027 and argues that fears generative AI could materially disrupt Salesforce are overblown because the vulnerable portion of its operations is relatively limited. The bank also believes investors are underappreciating Salesforce's high margins, recurring growth profile, and dominant position in customer relationship management software.