Key Highlights
- Monness Crespi Hardt elevates CRM to Buy rating, establishing a $200 target based on attractive valuation metrics
- Shares have declined 41% year-to-date in 2026 and sit 58% below all-time peak levels
- Current valuation metrics show P/E of 18.1 with PEG ratio at 0.47
- Company completed $3.6 billion all-cash acquisition of Fin (previously Intercom)
- Institutional investors control 80.43% of outstanding shares, with recent position increases
Salesforce (CRM) shares currently trade at $151.67, hovering near the 52-week bottom of $149.80, following a substantial 41% decline throughout 2026. This performance places it as the second-weakest stock within Monness, Crespi, Hardt’s research coverage.
This Wednesday, Monness elevated CRM from Neutral to Buy, assigning a $200 price objective. The investment firm emphasized that the valuation presents a compelling opportunity considering the magnitude of the selloff.
Salesforce has retreated 58% from its peak reached in late 2024. When the rating adjustment was announced, shares were changing hands at $155.02, though they’ve continued sliding since then.
The fundamental metrics support the value thesis. CRM currently shows a price-to-earnings multiple of 18.1 alongside a PEG ratio of 0.47. The enterprise maintains a gross profit margin of 77.6% while generating a free cash flow yield of 12%.
Monness highlighted several additional factors supporting their upgrade, including Salesforce’s robust cash flow generation capabilities, impressive margin structure, and the substantial $25 billion share repurchase authorization approved in March.
Strategic Acquisition of Fin
Salesforce has recently finalized an agreement to acquire Fin, the company formerly operating as Intercom, in an all-cash transaction valued at $3.6 billion. Fin’s artificial intelligence agent technology autonomously handles customer inquiries, achieving a 76% resolution rate while generating more than $400 million in annual recurring revenue.
Multiple Wall Street firms reacted favorably to this strategic move. Jefferies maintained its Buy recommendation with a $250 price objective. Canaccord Genuity confirmed its Buy stance at $225. Stifel preserved its Buy rating alongside a $250 target. Wolfe Research continued with an Outperform designation and $220 target.
UBS stood apart from the consensus, maintaining a Neutral position with a $185 price target while expressing reservations about the acquisition’s immediate financial contribution.
Financial Performance and Forward Outlook
For its latest quarterly results announced May 27, Salesforce delivered earnings per share of $3.88, surpassing analyst expectations of $3.13 by $0.75. Total revenue reached $11.13 billion, exceeding the $11.05 billion consensus forecast, representing 13.3% growth compared to the prior year.
Management provided FY2027 EPS guidance ranging from $14.06 to $14.12, with Q2 2027 projections between $3.25 and $3.27. The analyst community’s full-year EPS consensus currently stands at $10.29.
Institutional investment activity continues. SG Trading Solutions established a new stake valued at approximately $1.18 million. Temasek, Fisher Asset Management, and Van Eck Associates have all expanded their existing holdings. Collectively, institutional investors and hedge funds control 80.43% of CRM shares.
Wall Street’s consensus price target stands at $257.61. Among 42 analysts tracking the stock, 26 recommend Buy, 12 suggest Hold, 3 advise Sell, and one rates it Strong Buy.
The company announced a quarterly dividend distribution of $0.44 per share, scheduled for payment on July 2, yielding 1.2% annually.
Technically, CRM’s 50-day moving average rests at $177.91, while the 200-day moving average sits at $204.72, both significantly above current trading levels.
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