Salesforce Surges as Strong Earnings Boost Price Targets

Salesforce reported strong financial results for Q2 2027, beating analysts' expectations on both revenue and earnings per share (EPS). The company posted $11.35 billion in sales, exceeding the predicted $11.32 billion, and EPS of $4.29, surpassing the anticipated $3.27.

Management also revised its fiscal 2027 guidance upward, forecasting revenue between $46.1 billion and $46.4 billion, and diluted EPS between $10.21 and $10.25. This increased optimism has led analysts to raise their price targets on Salesforce stock, with Jefferies increasing its target to $300 from $250, and Raymond James boosting its target to $310 from $290.

Despite the recent surge in share price, which has risen 13.7% since the end of July, some analysts believe that Salesforce stock is still undervalued, trading at a discount to its five-year average cash flow multiple of 18.3.