Truist Reiterates Buy Rating on Salesforce Amid Growth Concerns
Despite ongoing concerns about Salesforce's second-half organic growth inflection and agentic AI as a material catalyst, Truist Securities has reiterated its 'Buy' rating on the company with a $280 price target.
The firm believes the stock is undervalued at current levels, trading at a P/E ratio of 24.4 and a low PEG ratio of 0.61.
Truist assumes solid progress in strategically important areas for the second quarter and expects improving organic growth going forward based on favorable net new annual order value trends.
The analyst notes concerns in the market include long-term model achievement, acquisitions that muddy the picture, and the stock being a value trap.
Truist cites the stock's valuation at 12 times calendar year 2027 estimated free cash flow as pointing to an interesting risk/reward opportunity.