Truist Reduces Target Price on Salesforce (CRM) to $280, Citing Sector-Wide Valuation Compression

Salesforce Inc. (NYSE:CRM) is one of the 14 Most Undervalued NYSE Stocks to Buy According to Analysts.

Truist, on February 27, reduced its target price on Salesforce by 26.3% to $280 (from $380), while retaining the firm’s Buy recommendation on the stock. Sector-wide valuation compression was the main driver of this price cut, overshadowing an otherwise stable Q4 FY 2026 results, which showed modest upside in subscription and revenue growth. Noisy FY 2027 guidance, due to Informatica’s inclusion and soft organic Salesforce guide, also contributed to the target price update.

This update comes two days after Salesforce released its Q4 FY 2026 results on February 25. The release was headlined by a 37% YoY growth in diluted adjusted earnings per share to $3.81, beating street consensus estimates of $3.05. Earnings growth was driven primarily by rapid growth in the company’s Agentforce 360 and Slack platforms.

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Management also provided its guidance for FY 2027. For Truist, the main concern was the revenue guidance. Management is expecting 10% to 11% growth in consolidated revenue for FY 2027. Removing the effect of the Informatica acquisition, the implied revenue growth for just the Salesforce portion comes out to around 7% to 8%. This organic growth figure would be a deceleration compared to the 10% YoY growth Salesforce posted in FY 2026.

Salesforce Inc. (NYSE:CRM) is a global enterprise software company that provides customer relationship management (CRM) and cloud-based business applications across sales, service, marketing, commerce, and data analytics. Its Customer 360 platform, powered by data tools and trusted AI, enables organizations to unify customer data and drive personalized engagement.

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