Salesforce Stock Continues to Attract Analysts' Attention Amid AI Shift
Salesforce's stock continues to attract positive attention from analysts, following a company webinar on Q2 FY27 Product Adoption & Momentum. The event featured President and Chief Commercial Officer Bill Patterson and President of Sales and Chief Consumption Officer Connor Marsden. Analyst Patrick Walravens at Citizens reiterated a Market Outperform rating and $315 price target for the stock.
The optimism is well-founded, given that 30 analysts have revised their earnings upwards for the upcoming period, and the stock trades at an attractive PEG ratio of 0.39. This suggests strong value relative to growth prospects.
Patterson addressed a question about outcome-based pricing during the webinar, stating that Salesforce will be driving more outcome-based offerings in sales, service, and across its platform. Citizens views this approach 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, announced under the Claudeforce initiative, was described as a significant development by TD Cowen, which subsequently raised its price target to $300. Additionally, Salesforce's current remaining performance obligation grew by 14% in constant currency, surpassing the 13% consensus estimate.