- Salesforce (CRM) shares rose in early Monday trading, buoyed by Truist Securities’ Buy rating and $400 price target, driven by growth potential in Data Cloud, AI/Agentforce, and Marketing Cloud through fiscal year 2026 (FY26) and into 2027 (FY27).
- Truist highlights Salesforce’s valuation as attractive, with an enterprise value to calendar year 2026 estimated free cash flow multiple of 17.5x and a de-risked revenue outlook, forecasting stronger growth in FY26’s second half and beyond.
- The firm praises Salesforce’s capital allocation strategy and strong balance sheet, which support investments in key growth areas, positioning the company to capitalize on its diverse portfolio and potentially accelerate its trajectory in a competitive market.
Salesforce (CRM) shares climbed $4.84, or 1.72%, to $285.51 in early Monday trading, reflecting investor enthusiasm following a bullish assessment from Truist Securities. The firm upheld its ‘Buy’ rating on the $270 billion market cap company, setting a $400 price target that signals robust confidence in Salesforce’s future. Truist’s optimism hinges on a constellation of growth drivers – Data Cloud, AI/Agentforce, and an enhanced Marketing Cloud – that analysts believe could propel the company’s trajectory through fiscal year 2026, with momentum expected to surge in the second half, and even more significantly into fiscal year 2027.
The valuation case for Salesforce, as articulated by Truist, rests on a compelling enterprise value to calendar year 2026 estimated free cash flow (EV/CY26E FCF) multiple of 17.5x, a figure that suggests the stock remains attractively priced relative to its projected cash generation. This metric, paired with what the firm describes as a “de-risked and macro-adjusted revenue guidance,” underscores a narrative of stability amid economic uncertainty—a rare asset in today’s volatile tech landscape. Salesforce’s diverse portfolio stands out as a key differentiator, with innovations like AI/Agentforce poised to tap into the growing demand for intelligent automation, while Data Cloud and Marketing Cloud enhancements signal the company’s ability to adapt and capture market share across enterprise software segments.
Beyond growth prospects, Truist highlights Salesforce’s capital allocation strategy as a pillar of its investment appeal, bolstered by a strong balance sheet that affords flexibility for strategic investments and shareholder returns. This financial resilience positions Salesforce to not only weather potential headwinds but also to double down on high-potential areas like AI and data analytics, which are increasingly critical for enterprise clients. The analyst’s projection of stronger growth in FY26’s latter half, extending into FY27, reflects a belief that these catalysts will compound over time, potentially revitalizing Salesforce’s trajectory after a period of recalibration. At $285.51, the stock’s 1.72% uptick mirrors market approval of Truist’s outlook, though the journey to $400 – 40% higher from the stock’s currently levels – will depend on Salesforce translating these drivers into tangible results amidst a competitive tech ecosystem.
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