UBS Lifts Salesforce Price Target Amid AI Optimism

UBS raised its price target for Salesforce to $260 from $240 while maintaining a Neutral rating on the stock. The company currently trades at a P/E ratio of 22.7 with a PEG ratio of just 0.36, indicating attractive valuation relative to growth.

The firm attended Salesforce’s Dreamforce conference in San Francisco, where analysts met with customers and management to discuss the new AIforce offering and its monetization strategy.

UBS concluded that the new product has potential to drive usage, but the price point is too high to drive material near-term traction. The firm views the premium upgrade pricing as a barrier to adoption.