Morgan Stanley analyst Keith Weiss remains optimistic about Salesforce (CRM), reiterating his Buy rating on the stock. The five-star analyst believes investors are underestimating the impact of the company’s recent price hikes, particularly their potential to drive adoption of premium service tiers.
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What’s Driving the Optimism?
Weiss pointed out that while the immediate revenue boost from the price hikes may be modest in fiscal years 2027 and 2028, the main reason behind these changes is largely “underappreciated.”
Weiss sees Salesforce’s revamped “Pricing & Packaging” strategy as a key catalyst. As part of this strategy, the company is rolling out higher-tier bundles, like Agentforce 1 and Unlimited Edition, that offer significant cost savings to users.
The analyst noted that the higher list prices, set to take effect in August 2025, are a strategic move designed to encourage higher adoption of premium tiers. Using Sales Cloud as an example, Weiss estimates that customers can realize about 70% in cost savings by opting for Unlimited Edition bundles compared to purchasing standalone features.
He expects these changes to drive upgrades and boost subscription revenue through Fiscal 2028.
In addition, the Top analyst believes that Salesforce stock’s valuation remains attractive. Weiss has set a $404 price target on Salesforce stock, which implies a 48.5% upside potential.
Is CRM a Buy, Hold, or Sell?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 34 Buys, nine Holds, and three Sells assigned in the last three months. At $347.25, the average Salesforce stock price target implies a 27.61% upside potential.
