UBS Lifts Salesforce Price Target to $240 Amid Optimism Over Guidance

UBS has increased its price target for Salesforce.com (Salesforce) to $240 from $210, while maintaining a Neutral rating. This move follows the company's latest guidance reaffirmation.

Salesforce's fiscal 2027 organic constant-currency revenue growth guidance remains at 7% to 8%, implying a modest second-half acceleration. The company also reaffirmed its non-GAAP operating margin and cash flow growth guidance, which had sparked concerns that it might reduce its second-half acceleration forecast.

UBS valued the stock at 13 times calendar year 2027 estimated free cash flow. Salesforce currently trades at a P/E ratio of 23.86 with a PEG ratio of just 0.6, indicating attractive valuation relative to growth. According to InvestingPro analysis, the platform appears undervalued at current levels, with significant upside potential.