- Salesforce (CRM) stock rose slightly to $255.58 in Monday trading, with an intraday high of $260.00, following a Friday close at $255.00.
- DA Davidson lowered its price target on Salesforce to $250 from $275, maintaining a ‘Neutral’ rating, citing expected U.S. GDP contraction of one or two quarters this year.
- The firm anticipates reduced corporate investment and consumer activity due to economic slowdown and tariff policies, impacting software sector growth and valuations.
Salesforce (CRM), a leading enterprise software company, saw its stock edge up to $255.58 in Monday trading, reaching an intraday high of $260.00 after closing at $255.00 on Friday. The move comes amid broader market caution, following a revised outlook from DA Davidson. Analyst Gil Luria lowered Salesforce’s price target from $275 to $250 while maintaining a ‘Neutral’ rating.
The downgrade reflects growing concerns in the software sector, as DA Davidson projects one or two quarters of negative U.S. GDP growth this year. Such an economic slowdown could weigh on corporate investment and consumer activity—factors that typically pressure growth projections and valuations for tech names like Salesforce.
Luria emphasized the link between macroeconomic trends and tech valuations, pointing out that expectations of a GDP contraction are already rippling through market sentiment. While Salesforce remains a cornerstone player with a diverse product suite across sales, service, and marketing, it’s not immune to these headwinds.
Still, the stock’s resilience near the $255 level suggests investors are factoring in both the near-term risks and Salesforce’s longer-term strengths. With its cloud-based, scalable solutions and strong enterprise foothold, Salesforce remains well-positioned to navigate a shifting economic landscape—even as the sector adjusts to new growth realities.
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