Research Alert: CFRA Downgrades Opinion On Shares Of Salesforce.com To Buy From Strong Buy

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We cut our 12-month target to $210 from $240, on a lower revised P/E of 14x our CY 2027 EPS, well below historical amid a SaaSpocalypse that is driving investor fears. We are tempering our outlook following our downgrade of the application software space to neutral from positive earlier this year for well-known reasons (e.g., seat growth concerns, competitive pressures, enterprise shift to AI Agents). In recent weeks, we have seen Anthropic/OpenAI get more aggressive releasing enterprise tools (Claude Managed Agents launched yesterday) that we think will only accelerate ahead of IPOs and as new compute capacity gets aggressively added. This is only likely to create more uncertainty about the tail end risk (beyond 2027), which is likely could constrain multiples. Still, we think CRM is better positioned than most SaaS providers and remain constructive given our view of its core business/stickier ecosystem, Agentic AI momentum, and greater ability to pivot to a more consumption/transactional based model.

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $210 from $240, on a lower revised P/E of 14x our CY 2027 EPS, well below historical amid a SaaSpocalypse that is driving investor fears. We are tempering our outlook following our downgrade of the application software space to neutral from positive earlier this year for well-known reasons (e.g., seat growth concerns, competitive pressures, enterprise shift to AI Agents). In recent weeks, we have seen Anthropic/OpenAI get more aggressive releasing enterprise tools (Claude Managed Agents launched yesterday) that we think will only accelerate ahead of IPOs and as new compute capacity gets aggressively added. This is only likely to create more uncertainty about the tail end risk (beyond 2027), which is likely could constrain multiples. Still, we think CRM is better positioned than most SaaS providers and remain constructive given our view of its core business/stickier ecosystem, Agentic AI momentum, and greater ability to pivot to a more consumption/transactional based model.