Key Takeaways
- Goldman Sachs reaffirmed its Buy recommendation on Salesforce (CRM) with a $242 price objective, while shares currently sit at $171.22
- Lead analyst Gabriela Borges anticipates organic revenue growth will pick up in the third quarter, fueled by improving business momentum and bookings strength
- The company is advancing its AI revenue strategy through consumption models, premium package offerings, and agent-based licensing structures
- Client data reveals that organizations deploying Salesforce alongside AI agents experience usage rates up to 5x higher, with Slack showing early adoption benefits
- The company announced a $3.6 billion deal to buy Fin (previously Intercom), bolstering its AI-powered customer service portfolio
Trading at $171.22, Salesforce (CRM) has experienced a 28% decline over the previous half-year period. Despite this downturn, Goldman Sachs continues backing its Buy recommendation alongside a $242 price objective, suggesting the shares are trading below their fundamental value.
Analyst Gabriela Borges conducted meetings with Salesforce investor relations teams in London during July 6-7. These discussions provided clearer insights into the company’s strategic direction and near-term prospects.
Borges projects that Salesforce will experience accelerating organic revenue growth during the third quarter. Her optimism stems from observable improvements in new customer acquisition and strengthening bookings trends.
The analyst interprets management’s candid discussion of challenges facing Tableau, Commerce, and Marketing divisions as a transparent recalibration rather than fundamental weakness. Goldman Sachs appreciates the company’s forthright assessment of the 12 to 24 month timeframe these headwinds may affect growth trajectories.
AI Revenue Strategy Takes Shape
Salesforce is developing what Borges characterizes as a “headless” revenue generation approach. This encompasses usage-based pricing models, premium product bundling, and AI agent-specific licensing, with additional clarity anticipated at the September Agentforce conference.
Early adoption metrics paint a compelling picture. Organizations implementing Salesforce solutions integrated with AI agents demonstrate usage levels reaching 5x higher compared to traditional deployments. Slack is demonstrating resilience as the platform incorporates new large language model-powered capabilities.
InvestingPro data indicates that twenty-four analysts have raised their earnings projections for the next reporting period. Additionally, the company maintains a robust 77.6% gross profit margin, providing financial flexibility to navigate short-term challenges.
Strategic Acquisition Enhances AI Service Capabilities
Salesforce revealed plans to purchase Fin, the company formerly operating as Intercom, in a transaction valued at approximately $3.6 billion. Goldman Sachs identifies Fin as among only three or four premier platforms in the AI-driven customer service sector.
According to Borges, the critical consideration involves whether Salesforce can successfully merge Fin’s technological capabilities with its current Agentforce infrastructure and extend it to smaller enterprise customers following deal completion.
Wall Street analysts have expressed mixed perspectives. KeyBanc shifted its stance to Sector Weight from Overweight, expressing reservations about the timeline for Agentforce to generate meaningful revenue contribution.
Guggenheim moved in the opposite direction, elevating Salesforce to Buy from Neutral. The firm highlighted present valuation levels as creating an appealing investment opportunity.
Citizens continued its Market Outperform stance with a $315 price objective after the Fin acquisition announcement. Monness similarly maintains a Buy rating, though with a more measured $200 target.
Salesforce has additionally formed a partnership with the Visa Cash App Racing Bulls Formula 1 Team to implement its Agentforce 360 solution and Slack for enhancing fan interaction and operational efficiency.
Goldman’s $242 price objective represents approximately 41% potential appreciation from the present trading level of $171.22.
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