- Citi raised its price target to $200, marking the first boost since the company’s softer fiscal 2027 revenue outlook.
- Aside from Citi’s modest increase, major brokerages cut price targets, while maintaining bullish long-term AI views.
- The company authorized a $50 billion buyback, raised its dividend, and signaled continued acquisitions.
Shares of Salesforce Inc. (CRM) slipped nearly 2% in premarket trading on Tuesday, even as Citi became the first brokerage to raise its price target since the company’s softer revenue outlook rattled investors last week, underscoring lingering investor caution around AI disruption.
CRM stock posted its second consecutive session on losses on Monday, sliding nearly 1% to end at $192.95.
CRM Gets First Target Hike Since Q4 Print
Citi raised its price target on Salesforce to $200 from $197, implying a 4% upside from current levels, and maintained a ‘Neutral’ rating after updating its model post-earnings. The slight increase marks the first price target hike since Salesforce forecast fiscal 2027 revenue of $45.8 billion to $46.2 billion, with the midpoint slightly below analyst expectations.
CRM Price Target Cuts Spread Across Wall Street
With the exception of Citi’s small price target increase and ‘Neutral’ rating, most brokerages trimmed targets following Salesforce’s softer fiscal 2027 outlook, though many kept bullish ratings and pointed to longer-term AI potential.
Goldman Sachs lowered its target to $281 from $330 and maintained a ‘Buy’ rating, saying the key question is whether Salesforce can turn Agentforce into “durable growth versus newer competitors.” Piper Sandler, which kept an ‘Overweight’ rating while cutting its target to $250, said guidance of 10.5% growth “is likely not changing minds” as investors question whether “AI is eating software-as-a-service.”
Wedbush, reiterating an ‘Outperform’ rating despite reducing its target to $325, called Salesforce a long-term AI winner but said the stock sits at the “epicenter of the AI Ghost Trade selloff for software.” JPMorgan, with an ‘Overweight’ rating, described the quarter as “static” but noted internal metrics are improving.
On the more cautious end, RBC Capital cut its target to $210 and kept a ‘Sector Perform’ rating, calling shares “fully valued,” while Bernstein maintained an ‘Underperform’ rating and pointed to guidance implying slight organic growth deceleration.
Other firms lowering price targets included Truist, DA Davidson, Baird, BMO Capital, Mizuho, TD Cowen, Canaccord, Oppenheimer, BTIG, Stifel, Roth Capital, Wells Fargo and Barclays.
CEO Touts AI Growth Amid SaaS Disruption Fears
Salesforce has become a focal point in Wall Street’s debate over whether AI will erode traditional software business models. Despite near-term growth concerns, Salesforce struck a confident tone on its earnings call, highlighting AI traction, large-deal momentum and stepped-up capital returns.
The company reported fourth-quarter (Q4) earnings per share (EPS) of $3.81, beating estimates of $3.05, on revenue of $11.2 billion. Current remaining performance obligations (RPO) rose 16% year over year to $35.1 billion, while total RPO rose 14% to $72 billion.
CEO Marc Benioff called it a “phenomenal quarter” and said the company is “well on our way” to reaching $63 billion in annual revenue by fiscal 2030. Annual recurring revenue of Agentforce, the company’s AI automation platform, climbed to $800 million, up from $500 million in the prior quarter, with record bookings and 29,000 deals closed. The company reiterated expectations for “organic growth re-acceleration” in the second half of fiscal 2027.
Salesforce authorized a new $50 billion share repurchase program and raised its quarterly dividend 5.8% to $0.44 per share. The company said the balance sheet is “very underleveraged,” and signaled continued acquisitions.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment for CRM was ‘extremely bullish’ amid ‘extremely high’ message volume.
One bullish user said, “The buy-backs have ensured the floor. It’s only upwards from here. Slow and steady as the company slowly vacuums the cheap stocks till they are no more cheap.”
Another user said, “You can believe the A.I. won’t disrupt all these SAAS companies. It’s harder to believe that productivity gains won’t equal considerable license declines.”
CRM stock has declined 27% year-to-date.
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