TD Cowen Raises Salesforce Price Target to $280 on AI Growth Confidence

TD Cowen has raised its price target for Salesforce.com stock to $280 from $240 while maintaining a Buy rating.

The current stock price is $247.60, which according to InvestingPro data is undervalued compared to its Fair Value estimate.

TD Cowen noted that second-quarter organic subscription revenue growth of approximately 6% on a constant currency basis came in below their estimate of around 7%, but the firm's assumptions for acceleration in the second half of the year remain intact.

The firm highlighted a stronger current remaining performance obligation print and guidance, along with AI annual recurring revenue that exceeded estimates for the second consecutive quarter.