Needham Reaffirms Buy Rating for Salesforce with $400 Target
Needham reiterates its buy rating on Salesforce, setting a price target of $400, a 166.47% upside from the current price.
Key Points
- On June 16, 2026, Needham reiterated its buy rating on Salesforce, Inc. (CRM) with a price target of $400.
- Needham's $400 price target implies 166.47% upside from Salesforce, Inc.'s ($CRM) current $150.11 share price.
- Salesforce shares traded at $165.64, with a market cap of approximately $134.8 billion and a P/E ratio of 19.1.
- Insiders and analysts show varied activity, with insider buying noted and a consensus buy rating from analysts.
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On June 16, 2026, Needham reaffirmed its buy rating on Salesforce, Inc. (NYSE: CRM), setting a price target of $400. Analyst Scott Berg remains optimistic about Salesforce's prospects, as the stock traded at $165.64.
Other Institutional Activity in Salesforce
BlackRock, Inc. trimmed its holdings in Salesforce by 994,580 shares, ending with 79,691,184 shares valued at about $14.88 billion. Morgan Stanley, on the other hand, significantly increased its stake by 12,666,457 shares, bringing its total to 31,675,603 shares worth approximately $5.91 billion. Meanwhile, Vanguard Capital Management LLC added a substantial 59,333,776 shares, reaching a total of 59,333,776 shares valued at $11.08 billion.
Salesforce, Inc. Stock Down 41.4%
Shares of Salesforce (NYSE: CRM) traded at $165.64, with a market cap of roughly $134.8 billion. The stock has a P/E ratio of 19.1 and a forward P/E of 10.6, indicating a lower expected earnings multiple. Salesforce's beta is 1.151, suggesting a slightly higher volatility compared to the market. The stock's 52-week range spans from $161.4 to $276.8, with a 50-day moving average of $179.62 and a 200-day moving average of $217.85.
$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 achieved an EPS of $8.62, with a net margin of 18.7% and a return on equity of 16.9%. The next earnings release 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 1.07%. The dividend payout ratio is relatively low at 19.6%, indicating a sustainable dividend policy.
Insider Buying and Selling at Salesforce, Inc.
On May 22, 2026, several insiders engaged in trading activities. Notably, Oscar Munoz and Donald Arnold each bought 442 shares, while insiders like David Blair Kirk and Laura Alber sold the same number of shares. These trades were not part of any pre-arranged plans.
Analysts Set New Price Targets
Needham reiterated its buy rating for Salesforce, setting a price target of $400 on June 16, 2026. Other analysts have also weighed in recently, with Citigroup maintaining a hold rating and a target of $187, while Canaccord Genuity has a buy rating and a target of $225. Overall, the consensus among 52 analysts is a buy, with an average target price of $255.28.
About Salesforce
Salesforce, Inc. is a leader in customer relationship management technology, providing services that connect companies with their customers across the globe. Headquartered in San Francisco, California, and led by CEO Marc R. Benioff, the company employs over 83,000 people. Salesforce's offerings include AI-powered platforms for sales, service, marketing, and commerce, serving various sectors such as financial services, healthcare, and government.
Bottom Line
Needham's reiterated buy rating and substantial price target reflect confidence in Salesforce's growth potential. While the 13F filings provide a historical snapshot of institutional sentiment, investors should consider them as part of a broader analysis. Salesforce's strong market position and diverse offerings continue to make it a significant player in the technology sector.
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