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Why CFRA Remains Bullish on Salesforce (CRM) Despite Target Cut

Salesforce, Inc. (NYSE:CRM) is one of the AI Stocks Gaining Attention on Wall Street. On September 4, CFRA analyst Angelo Zino lowered the price target on the stock to $300.00 (from $375.00) while maintaining a Strong Buy rating.

Analysts at CFRA cut the price target to $300 from $375. However, they still see the stock as attractively valued. This is because even though some people believe that artificial intelligence is going to replace a lot of traditional software, CRM will still be a potential winner in the SaaS shakeup.

The analysts also believe that artificial intelligence will enhance Salesforce’s SaaS offering instead of replacing them.

“We lower our 12-month target to $300 from $375, on a P/E of about 21.3x our CY 27 EPS view of $14.13, a deep discount to historical averages. After posting solid Jul-Q results, we raise our FY 26 (Jan.) EPS estimate to $11.35 from $11.30 and hold FY 27 at $12.58. We start FY 28 EPS at $14.13. While conservative guidance provides ammo to pound the table on the view that AI is eating software, we still see CRM as a potential winner within the SaaS turmoil and view its valuation as highly enticing (about 17x our CY 27 EPS).”

“We believe that AI will be an extension of CRM’s SaaS offerings, not a replacement given its access to enterprise data and solutions. A positive takeaway on the call was that the 60% seq. increase in customers who have gone from pilot to production for its Agentic AI offering, expanding use cases/scaling. We expect CRM’s Agentic enterprise applications to reap considerable productivity improvements/savings that will pave the way toward better monetization/pricing (rising competition a risk).”

Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.

While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks Gaining Attention on Wall Street and 10 Hot AI Stocks to Keep on Your Radar.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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