Truist Reiterates Buy Rating for Undervalued Salesforce

Truist Securities has reiterated its Buy rating and $280 price target for Salesforce.com (CRM), citing the stock's undervalued status. According to InvestingPro analysis, CRM is trading at a P/E ratio of 24.4 and a low PEG ratio of 0.61.

The firm maintains its positive stance despite concerns about the company's second-half organic growth inflection and agentic AI as a material catalyst. However, Truist assumes that performance in strategically important areas progressed solidly in the second quarter and expects improving organic growth going forward based on favorable net new annual order value trends.

The stock is considered undervalued due to its valuation at 12 times calendar year 2027 estimated free cash flow, according to InvestingPro data. This aligns with a strong 9% free cash flow yield, making CRM one of the most undervalued stocks in the platform's analysis.

Other firms have also maintained positive outlooks on CRM, including Citizens and Oppenheimer, who reiterate Market Outperform and Outperform ratings, respectively. Cantor Fitzgerald continues to see potential in Salesforce, maintaining an Overweight rating and a $250 price target.