Salesforce.com Maintains Strong Value Despite AI Shift
Citizens analyst Patrick Walravens maintained his Market Outperform rating and $315 price target on Salesforce.com (salesforce.com), citing optimism that appears well-founded. The stock trades at an attractive PEG ratio of 0.39, indicating strong value relative to growth prospects.
The optimism follows a company webinar titled Q2 FY27 Product Adoption & Momentum, where President and Chief Commercial Officer Bill Patterson discussed outcome-based pricing. Salesforce will be driving more outcome-based offerings in sales, service, and across its platform, according to Patterson.
Citizens views outcome-based offerings as aligning incentives between Salesforce and its customers when appropriate, demonstrating how the company is evolving from a SaaS to an AI model.
The partnership with Anthropic under the Claudeforce initiative was described as significant by TD Cowen, which raised its price target on Salesforce shares to $300. The firm also highlighted Salesforce's strong second-quarter performance and potential for sustainable organic growth.