Carvana stock soars after S&P 500 inclusion announcement
Investing.com - Evercore ISI lowered its price target on Salesforce (NYSE:CRM) to $340 from $360 while maintaining an Outperform rating following the company’s fiscal third-quarter results. According to InvestingPro data, analysts have set targets ranging from $221 to $430 for the stock, which is currently trading at $238.72, suggesting potential upside based on Evercore’s target.
The software giant delivered solid results with revenue growing 9% (8% in constant currency), largely in line with expectations, while earnings per share of $3.25 significantly exceeded guidance. Current remaining performance obligation (CRPO) growth reached 11% in constant currency, approximately 200 basis points above estimates. InvestingPro data shows Salesforce maintains impressive gross profit margins of 77.65% and has achieved a perfect Piotroski Score of 9, indicating exceptional financial strength.
Evercore highlighted Agentforce surpassing $500 million in annual recurring revenue (ARR) with 300% growth as a significant achievement demonstrating real momentum in Salesforce’s artificial intelligence offerings. The firm also noted that net new annual contract value outpaced annual contract value, setting fundamentals for potential revenue acceleration in the second half of calendar year 2027. This aligns with Salesforce’s 9% revenue growth forecast for fiscal 2026, according to InvestingPro data.
Despite the price target reduction, Evercore added Salesforce to its top five ideas for 2026, citing several positive factors including improving AI narrative, potential revenue acceleration, easing of marketing and commerce headwinds, steady free cash flow growth, and attractive valuation at approximately 13 times enterprise value to calendar year 2027 free cash flow. InvestingPro analysis indicates Salesforce is currently undervalued compared to its Fair Value, with the stock trading at a P/E ratio of 34.58 and a PEG ratio of 1.71.
The analyst firm believes Salesforce shares could see a significant rerating if revenue accelerates and sentiment around its AI strategy turns positive, with upside potential materially outweighing downside risk. InvestingPro rates Salesforce’s overall financial health as "GREAT" with a score of 3.07, supporting Evercore’s positive outlook. For investors seeking deeper insights, Salesforce is among 1,400+ US equities with comprehensive Pro Research Reports available on InvestingPro.
In other recent news, Salesforce reported its third-quarter results, showing an 8% revenue growth in constant currency, which aligned with forecasts. The company’s current remaining performance obligation (cRPO) grew by 11% in constant currency, surpassing expectations and suggesting strong momentum in key metrics. Wolfe Research adjusted its price target for Salesforce to $300, maintaining an Outperform rating, while Raymond James reiterated a Strong Buy rating with a price target of $375, citing significant traction in Agentforce. Stifel also maintained a Buy rating and a $300 price target, emphasizing the acceleration in Salesforce’s cRPO growth and net new annual order value (NNAOV). KeyBanc reiterated an Overweight rating with a $400 price target, noting the company’s milestone achievement in net-new AOV growth outpacing overall AOV for the first time in three years. BofA Securities kept its Buy rating and $305 price target, highlighting the potential for AI-driven acceleration in Salesforce’s business. These developments underscore Salesforce’s progress and the positive sentiment among analysts regarding its growth trajectory.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.