Salesforce (CRM) is drawing cautious optimism from a couple of Wall Street analysts ahead of its upcoming Q3 earnings report, due on December 3. Top-rated analysts from Mizuho and Bank of America reiterated bullish ratings on the stock while slightly lowering their price targets. CRM stock was down about 3% during the regular trading session.
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Here’s What the Analysts Are Saying
Mizuho analyst Gregg Moskowitz lowered his price target to $340 from $350 but maintained a Buy rating. Despite weak sentiment around the software companies, Moskowitz noted that recent partner checks were encouraging. Overall, he supports a generally optimistic view ahead of Salesforce’s earnings.
Similarly, Bank of America analyst Bradley Sills trimmed his price target on Salesforce stock to $305 from $325, while reaffirming a Buy rating. The firm sees limited downside at current levels, even though expectations are low.
The price cut reflects lower valuations across software peers, not a change in Salesforce’s fundamentals. While average Q3 results may not move the stock much, the analyst still sees a path to stronger subscription revenue and remaining performance obligations (cRPO) growth.
What’s Ahead for Salesforce?
Salesforce is making efforts to grow by expanding its AI offerings across its core products. The company is investing heavily in generative AI tools, such as Einstein Copilot, to help businesses automate tasks, improve customer interactions, and boost productivity.
These tools are designed to work securely with customer data and integrate easily into existing workflows.
Further, CRM is focusing on strategic partnerships and providing industry-specific solutions. It is building deeper integrations with platforms like Slack and Tableau, while tailoring services for sectors such as healthcare, finance, and retail.
These efforts aim to drive adoption, increase customer retention, and open new revenue streams across its cloud ecosystem.
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 $327.31, the average Salesforce stock price target implies a 38.06% upside potential.
