Stifel Boosts Salesforce Price Target to $300 Amid AI Monetization Plans

Stifel has increased its price target for Salesforce.com stock to $300 from $275, while maintaining a Buy rating. The firm's analysts believe that the company is undervalued at current levels, with a P/E ratio of 23.24 and a notably low PEG ratio of 0.38.

Stifel cited management's reiteration of its fiscal 2030 revenue target of $63 billion at the company's analyst day. Management expressed confidence that net new annual order value growth will continue to outpace annual order value growth, and pointed to record pipeline levels.

The firm identified six ways Salesforce plans to monetize its AI opportunity: more core licenses, premium SKU upgrades, Agentforce and out-of-the-box agent spend, Data 360, Agent Fabric and Guardian, and APIs, MCPs, context and infrastructure. Stifel views these monetization paths as the most important driver to achieve the company's medium-term growth outlook.

Salesforce has been highlighting its AI capabilities through various announcements, including the user interface transformation with AIforce. Partner checks noted strong customer demand and steep adoption potential for these initiatives.