UBS Lifts Salesforce Price Target to $260 on AIforce Potential
UBS has raised its price target for Salesforce to $260 from $240 while maintaining a Neutral rating on the stock. The company's current P/E ratio is 22.7, with a PEG ratio of just 0.36, suggesting attractive valuation relative to growth.
According to UBS, the new AIforce offering has potential to drive usage, but its premium upgrade pricing may be too high to drive material near-term traction. The firm trimmed its fiscal 2028 revenue growth estimate and views the path to $63 billion in fiscal 2030 revenue as potentially more back-end loaded than previously expected.
UBS analysts attended Salesforce's Dreamforce conference, where they met with customers and management to discuss the new AI product and its monetization strategy. The firm concluded that while AIforce has potential, it may face challenges in driving near-term adoption due to its premium pricing.