UBS Lifts Salesforce Price Target Amid Reaffirmed Guidance

UBS has adjusted its price target for Salesforce (NYSE:CRM) to $240 from $210, maintaining a Neutral rating. This move follows Salesforce's latest guidance, which the firm considers a reaffirmation.

The company reaffirmed its fiscal 2027 organic constant-currency revenue growth guidance at 7% to 8%, implying a modest second-half acceleration. It also maintained its non-GAAP operating margin and cash flow growth guidance.

UBS noted that market sentiment had turned cautious due to concerns about Salesforce reducing its second-half acceleration guidance amid weak CRM software demand signals.

Salesforce shares were indicated up 13% following the announcement, with UBS valuing the stock at 13 times calendar year 2027 estimated free cash flow. The company currently trades at a P/E ratio of 23.86 with a PEG ratio of just 0.6, suggesting attractive valuation relative to growth.