Guggenheim Upgrades Salesforce to 'Buy' with New Price Target
Guggenheim has upgraded Salesforce to 'Buy', setting a $228 price target, a 45.54% upside from the current price.
Key Points
- Guggenheim upgraded Salesforce to a 'Buy' rating on July 1, 2026, with a new price target of $228.
- Guggenheim's $228 price target implies 45.54% upside from Salesforce, Inc.'s ($CRM) current $156.66 share price.
- Salesforce shares traded at $156.66 on Wednesday, with a market cap of $128.3 billion and a P/E ratio of 18.15.
- Insider activity at Salesforce includes buys and sells by top executives, and peers like Vanguard opened new positions.
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Guggenheim has raised its rating on Salesforce, Inc. (NYSE:CRM) to 'Buy' as of July 1, 2026. The firm set a new price target of $228 for the cloud-based software company. This upgrade reflects a positive outlook on Salesforce's growth prospects.
Other Institutional Activity in Salesforce
Several institutional investors have adjusted their positions in Salesforce. BlackRock, Inc. trimmed its holdings by 994,580 shares to a total of 79,691,184 shares, valued at about $14.88 billion. Vanguard Capital Management LLC opened a new position with 59,333,776 shares worth approximately $11.08 billion. State Street Corp reduced its stake by 1,126,842 shares, leaving it with 48,953,388 shares valued at $9.14 billion. Morgan Stanley significantly increased its holdings by 12,666,457 shares, bringing its total to 31,675,603 shares valued at around $5.91 billion. Geode Capital Management, LLC added 442,601 shares to hold 22,225,157 shares worth about $4.14 billion.
Salesforce, Inc. Stock Down 38.8%
Shares of Salesforce traded near $156.66 on Wednesday. The company boasts a market cap of approximately $128.3 billion and a P/E ratio of 18.15. Its forward P/E is 10.10, indicating expectations of future earnings growth. Salesforce's beta is 1.151, suggesting moderate volatility. The stock's 52-week range is between $146.32 and $276.80. Salesforce's 50-day moving average is $175.78, and the 200-day moving average is $213.50.
$CRM price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Salesforce reported revenue of $42.83 billion, reflecting a growth rate of 13.3%. The company's net margin stands at 18.73%, with a return on equity of 16.91%. Earnings per share are $8.63. The next earnings report is scheduled for September 2, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
12 target cuts vs 0 raises.
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EPS & revenue
EPS beat estimates by 23.2%. Revenue met estimates.
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Profit surprise
EBITDA missed by 35 percent. Operating income missed by 35 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
12 target cuts.
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Earnings quality
Operating margin up 2.0 points. Positive free cash flow.
Earnings Call Summary
Salesforce delivered strong second quarter fiscal 2026 results with $10.25 billion in revenue, up 10 percent year over year. The company highlighted exceptional momentum in Agent Force and Data Cloud, with Data Cloud and AI products generating $1.2 billion in ARR up 120 percent. Net new bookings from deals over $1 million grew 26 percent, and the company closed major deals with Dell, Marriott, and the US Army. Management emphasized that the agentic enterprise transformation is driving customer success, with 40 percent of Agent Force and Data Cloud bookings coming from existing customers expanding their investments.
Guidance Salesforce raised the low end of full-year revenue guidance to approximately $41.1 billion to $41.3 billion, representing about 8.5 to 9 percent growth. The company also raised non-GAAP operating margin guidance by 10 basis points to 34.1 percent and raised operating cash flow growth guidance to 12 to 13 percent. For next quarter, revenue is expected to be $10.24 billion to $10.29 billion, up 8 to 9 percent year over year.
Severe negative reset. The report materially damaged the forward outlook and likely forces major downward revisions.
Dividend
Salesforce pays an annual dividend rate of $1.76, yielding 1.12%. The dividend payout ratio is 19.56%, indicating a sustainable distribution relative to earnings.
Insider Buying and Selling at Salesforce, Inc.
Recent insider activity at Salesforce includes various transactions. On June 22, 2026, President and CLO Niles Sabastian bought 2,033 shares, while President and COFO Robin Washington sold 908 shares at an average price of $150.12. Additionally, Chief Eng/Cust Success Officer Srinivas Tallapragada sold 1,664 shares, and Co-Founder and CTO of Slack, Parker Harris, sold 2,540 shares.
Analysts Set New Price Targets
On July 1, 2026, Guggenheim upgraded Salesforce to a 'Buy' rating with a $228 price target. Previously, Needham reiterated its 'Buy' rating with a $400 target on June 16, 2026. Citigroup maintained a 'Hold' with a $187 target on May 28, 2026. The consensus among analysts is a 'Buy', with an average target price of $246.80 based on 52 opinions.
About Salesforce
Salesforce, Inc. is a leading provider of customer relationship management technology services. Headquartered in San Francisco, California, the company connects businesses with their customers globally. Salesforce offers a wide range of products, including AI-powered sales and service platforms, data management solutions, and integration services. Led by CEO Marc R. Benioff, Salesforce employs over 83,000 people and serves industries such as finance, healthcare, and government.
Bottom Line
Guggenheim's upgrade of Salesforce to 'Buy' with a $228 price target reflects confidence in the company's future performance. Investors closely watch institutional moves and analyst ratings to gauge market sentiment. As a reminder, 13F filings and analyst reports are backward-looking and may not represent real-time positions or opinions.
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