On Tuesday, May 27, UBS analyst Karl Keirstead lowered the price target for Salesforce, Inc. (NYSE:CRM) from $320 to $300 and maintained a “Neutral” rating.
This change came after the analyst attended the company’s World Tour event in New York City, where Salesforce, Inc. showcased its Agentforce and Data Cloud services. While these are high-growth areas, Keirstead pointed out that the adoption of Agentforce is still in its early stages.
A customer service team in an office setting using the company’s Customer 360 platform to communicate with customers.
The analyst also noted that a media report from last Friday had suggested that Salesforce, Inc. might have a renewed interest in acquiring Informatica. Keirstead shared his thoughts on what this possible deal could mean for the company’s market strategy and finances. The reduced price target of $300 reflects the potential risks linked with the execution of mergers and acquisitions.
Keirstead noted that Salesforce, Inc. is currently trading at a multiple of 16 times its estimated free cash flow for the fiscal year 2027. This is on the lower end of the valuation range when compared to its competitors. The analyst believes that while the challenging economic environment could slow Salesforce, Inc.’s growth in the short term, there is limited downside risk.
Salesforce, Inc. is an American cloud-based software company that specializes in customer relationship management (CRM). The company offers a range of applications and platforms for sales, customer service, automation, e-commerce, analytics, AI, and application development.
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