Northland Cuts Salesforce (CRM) Price Target, Keeps Outperform Rating

On May 29, Northland analysts maintained an ‘Outperform’ rating on Salesforce Inc. (NYSE:CRM) stock. However, they cut their price target to $396 from $423. The price cut is attributed to slight concern about the impact of the company’s recent acquisition, Informatica.

A man in black suit holding a tablet looks at stock market data on a monitor. Photo by Tima Miroshnichenko on Pexels

However, the analysts reiterated that the concern is not significant enough to overshadow the company’s positive outlook. The analysts touted the current remaining performance obligations (cRPO) that beat expectations due to favorable foreign exchange tailwinds. In addition, the analysts highlighted the solid 77.19% gross profit margin and strong market position that justify the ‘Outperform’ rating.

Northland analysts also remain optimistic about Salesforce revenue growing significantly owing to a 22% increase in distribution capacity. Additionally, the company’s AI-powered platform, Agentforce, is gaining traction in the industry by enhancing sales agents’ productivity.

The ‘Outperform’ rating affirms Northland’s belief that Salesforce is a favorable investment as the company continues to make strategic moves while positioning itself for robust growth. The company delivered strong first-quarter 2025 results as it achieved growth in key areas. It achieved a 12.1% increase in current remaining performance obligations.

Salesforce is a cloud-based software company that provides customer relationship management (CRM) applications. It helps businesses connect with customers and manage sales, marketing, service, and commerce, all on an integrated platform.

While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None.