Key Takeaways
- Monness raised its rating on CRM to Buy from Neutral, establishing a $200 price objective based on attractive valuation metrics
- Shares have declined 41% year-to-date in 2026 and sit 58% below peak levels, hovering near the 52-week low
- The stock currently carries a P/E multiple of 18.1 with a PEG ratio of 0.47
- The company completed its $3.6 billion all-cash purchase of Fin (previously Intercom)
- Institutional holders control 80.43% of outstanding shares, with multiple major funds increasing stakes
Salesforce (CRM) is currently changing hands at $151.67, barely above its 52-week bottom of $149.80, following a steep 41% year-to-date decline in 2026. This performance ranks it as the second-weakest stock within Monness, Crespi, Hardt’s research coverage.
This Wednesday, Monness elevated CRM from a Neutral stance to Buy while establishing a $200 price objective. The research firm highlighted the attractive valuation following the significant selloff.
Salesforce has now retreated 58% from its peak reached in late 2024. When the rating revision was announced, shares were priced at $155.02 and have continued sliding.
The fundamental metrics support the value argument. CRM currently trades at an 18.1 forward P/E multiple and displays a PEG ratio of 0.47. The enterprise maintains a robust gross profit margin of 77.6% alongside a free cash flow yield of 12%.
Monness highlighted several factors supporting their upgrade, including Salesforce’s strong cash flow generation capabilities, healthy margin structure, and the company’s $25 billion share repurchase authorization approved in March.
Fin Acquisition Details
Salesforce finalized an agreement to acquire Fin, the company previously operating as Intercom, in a $3.6 billion all-cash transaction. Fin’s artificial intelligence agent technology autonomously handles customer inquiries with an impressive 76% resolution rate while producing more than $400 million in annual recurring revenue.
Multiple Wall Street firms reacted favorably to the transaction. Jefferies maintained its Buy recommendation with a $250 price objective. Canaccord Genuity affirmed its Buy stance at $225. Stifel preserved its Buy rating alongside a $250 target. Wolfe Research continued with an Outperform rating and $220 price goal.
UBS represented the exception, maintaining a Neutral position with a $185 price target while expressing reservations about the deal’s short-term contribution.
Financial Results and Forward Outlook
In its latest quarterly report released May 27, Salesforce delivered EPS of $3.88, surpassing the consensus projection of $3.13 by $0.75. Revenue reached $11.13 billion, exceeding the anticipated $11.05 billion and representing 13.3% year-over-year growth.
Management established FY2027 EPS guidance between $14.06 and $14.12, with Q2 2027 projections ranging from $3.25 to $3.27. The analyst community’s average full-year EPS forecast stands at $10.29.
Institutional activity remains robust. SG Trading Solutions initiated a fresh stake valued at approximately $1.18 million. Temasek, Fisher Asset Management, and Van Eck Associates expanded their existing holdings. Combined institutional and hedge fund ownership now represents 80.43% of CRM shares.
Wall Street’s consensus price target stands at $257.61. Among 42 analysts tracking the stock, 26 maintain Buy ratings, 12 recommend Hold, 3 suggest Sell, and one rates it Strong Buy.
The company announced a quarterly dividend of $0.44 per share, distributing on July 2, translating to an annual yield of 1.2%.
CRM’s 50-day moving average registers at $177.91. The 200-day moving average sits at $204.72, both significantly above current trading levels.
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