Citi Cuts Salesforce Target by 8% to $265 After Slow Booking Checks
Citi reduced its 12-month price target for Salesforce by 8% to $265 per share, citing channel checks that flagged slower Marketing Cloud and Professional Services bookings. Checks prompted Citi to cut its Q1 revenue forecast to $9.8 billion and trim EPS projections to $1.20, indicating slower growth.
1. Analyst Price Target Reduction
Citi lowered its 12-month price target for Salesforce by 8% to $265 per share, reflecting concerns from recent customer engagement and subscription trends.
2. Channel Checks Indicate Slowdowns
Citi’s proprietary checks revealed weaker-than-expected order momentum in Salesforce’s Marketing Cloud and Professional Services units, suggesting corporate tech spending may be softening.
3. Revised Q1 Forecasts
In response to these findings, Citi trimmed its Q1 revenue estimate to $9.8 billion (from $10 billion) and reduced its EPS forecast to $1.20 (from $1.30), underscoring a more cautious outlook.