Salesforce Price Target Skyrockets as Model Sees 48.76% Upside
Salesforce shares have been down double digits this year, but our model sees significant upside. According to 24/7 Wall St., the company's price target is $348.23, which represents a 48.76% increase from its current price of $234.08.
The model's confidence level is high at 90%, and it recommends buying Salesforce shares due to the gap between price and fundamentals. The consensus fiscal 2027 EPS estimate has risen sharply higher over the past 90 days, reaching $16.7553.
Despite being priced like a slow grower, Salesforce's AI products are expanding rapidly, with Agentforce Momentum fueling a 14% one-month rebound. Additionally, the company's revenue growth and non-GAAP EPS beat expectations in its fiscal Q2 report.
Bulls see a path to $388 as premium upgrades kick in, driven by the fact that only 5% of Sales and Service knowledge workers have moved to premium editions. However, cautionary views note that debt has risen to $39.3 billion from $10.4 billion, and operating income was flat at $2.33 billion.