Cantor Fitzgerald analyst Matthew VanVliet has reiterated a Buy rating and a $325 price target on Salesforce (CRM), backed by optimism in the enterprise software giant’s long-term growth prospects. The analyst is optimistic about CRM’s revenue growth potential and believes the stock is highly undervalued at the time.
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He noted that Salesforce is deeply embedded in enterprise operations, which should support steady revenue growth and strong free cash flow over time.
Also, VanVliet acknowledged market concerns around AI-driven disruption but argued that these fears are creating a compelling risk/reward setup for investors willing to hold through volatility.
“At 16x price-to-next-twelve-months FCF, CRM is trading near its all-time low multiple,” he said. The analyst added that a 20 to 25x multiple would be more fitting for a company with Salesforce’s quality, margin expansion potential, and FCF growth.
Strategic Acquisitions Fuel Growth
Salesforce’s growth strategy continues to lean heavily on acquisitions that expand its platform capabilities and customer reach. Over the past few years, the company has made several purchases, including Doti, Tableau, and MuleSoft.
A major focus is on building an “agentic” AI stack to power autonomous AI agents. Acquisitions such as Informatica (INFA), Convergence.ai, and Bluebirds are expected to help build this capability by providing the data and AI talent.
With these moves, CRM aims to strengthen its position as the go-to cloud-based CRM and enterprise collaboration suite.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 30 Buys, nine Holds, and one Sell assigned in the last three months. At $328.14, the average Salesforce stock price target implies a 34.63% upside potential.
