Salesforce Shares Down 42% as Piper Sandler Cuts Target to $280
Salesforce shares have plunged 42% over the past year and 21% year-to-date, prompting Piper Sandler to lower its price target to $280 from $315 while maintaining an Overweight rating. Jim Cramer labeled the drop “shocking” as the stock trades at 27 times earnings, and analysts warn AI-driven coding tools are deepening sector discounts.
1. Piper Sandler Lowers Price Target
In early February, Piper Sandler reduced its Salesforce price target from $315 to $280 while retaining an Overweight rating. The firm cited risks tied to the company’s seat-based licensing model and potential coding automation from AI.
2. Jim Cramer’s “Shocking” Reaction
Jim Cramer remarked that it was “shocking” to see Salesforce trading down during his interview, highlighting that the stock still trades at roughly 27 times forward earnings despite recent weakness. He contrasted the strength of the firm’s AI products with concerns over its legacy business.
3. AI-Driven Sector Selloff
Broader software sector turmoil is being driven by fears that AI models like ChatGPT and Claude will automate coding, eroding traditional licensing revenue. Analysts say this “software apocalypse” narrative has pushed valuations of companies such as Salesforce to multi-year lows.