Stifel Sticks with Buy Rating on Salesforce Amid Earnings Hopes

Stifel has maintained its Buy rating and $250 price target on Salesforce stock (CRM) ahead of the company's second-quarter earnings report.

The firm expects CRM to deliver in-line to modest upside results for second-quarter revenue and current remaining performance obligations, with growth of 10% and 13% in constant currency, respectively. Stifel also anticipates a slight increase in the fiscal 2027 subscription and support outlook to 11% in constant currency.

The guidance is expected to imply second-half subscription and support acceleration, based on stable customer and partner checks. Salesforce shares have declined 25% year-to-date compared to a 1% decline for the IGV index, with the stock currently trading at $198.58. According to InvestingPro analysis, the stock appears undervalued at current levels.