On August 13, JPMorgan began covering Salesforce (CRM) by assigning an Overweight recommendation and establishing a December 2027 price objective of $250. According to analyst Samik Chatterjee, the worries weighing on shares are “overblown,” and current pricing reflects expectations of continued growth slowdown instead of recognizing the company’s advancement toward its Rule of 50 objective for fiscal year 2030.
Shares of CRM began Thursday’s session at $193.20, declining approximately 2.1% during the trading day. The stock remains considerably below its 52-week peak of $269.11 while staying above its yearly low of $146.32. The 50-day moving average stands at $170.96, with the 200-day average positioned at $182.38.
Chatterjee from JPMorgan indicated expectations for momentum building in Salesforce’s primary operations during the latter half of fiscal 2027, concluding in January 2027. He emphasized that worries surrounding disruption from advanced AI models and competitive pressures “should be limited to a small portion of the business.”
The investment firm highlighted valuation as particularly attractive, describing it as “inexpensive” considering the low double-digit revenue expansion, industry-leading profit margins, and dominant market position in enterprise CRM solutions. JPMorgan suggested potential gains could materialize even without revenue acceleration, driven solely by consistent growth and margin performance.
Salesforce released Q1 FY2027 earnings on May 27. Revenue reached $11.13 billion, climbing 13.3% compared to the prior year and exceeding the $11.05 billion consensus forecast. Earnings per share of $3.88 surpassed the $3.13 projection by $0.75.
Management provided guidance for FY2027 EPS ranging from $14.06 to $14.12, with Q2 EPS projected between $3.25 and $3.27. The analyst community’s average expectation for full-year EPS stands at $10.27.
Additionally, Salesforce distributes a quarterly dividend of $0.44 per share, translating to an annualized payout of $1.76 with approximately 0.9% yield.
JPMorgan’s bullish stance isn’t universally shared. UBS elevated its price objective from $185 to $210 while maintaining a neutral stance, warning that Salesforce might moderate expectations regarding revenue acceleration in the second half. Wells Fargo increased its target from $200 to $205, also retaining an equal-weight rating.
Sanford C. Bernstein reduced its objective from $194 to $173 alongside an underperform designation. BMO Capital decreased its target from $225 to $215 but preserved an outperform rating. BTIG maintained a buy recommendation with a $255 target.
Wall Street Zen moved CRM from buy to hold on August 1. Weiss Ratings downgraded shares to a sell rating in late July.
In aggregate, the stock carries a “Moderate Buy” rating according to MarketBeat, with a mean price target of $250.28. This composite includes two strong buy ratings, 25 buy recommendations, 16 hold ratings, and four sell designations.
Among institutional investors, Wealthcare Advisory Partners expanded its position by 36.7% during Q2, acquiring 4,664 shares to reach a total of 17,364 valued at approximately $2.72 million. Institutional ownership collectively represents 80.43% of the company.
Short interest in CRM declined 36.7% during the second half of July to 29.4 million shares, alleviating some of the downward pressure that had accumulated against the stock.
The post JPMorgan Launches Salesforce (CRM) Coverage with Bullish Stance Despite AI Worries appeared first on Blockonomi.
