Salesforce Targets Slashed to $250 & $210 After Q4 Beat, 10.5% Guide
Piper Sandler cut Salesforce’s target to $250 from $280 and RBC slashed theirs to $210 from $290 after Q4 beat but FY27 growth guidance of 10.5% missed the 11.1% estimate. Management reaffirmed Analyst Day targets, citing strong bookings, improved retention and net new ARR growth exceeding average order value gains.
1. Piper Sandler Lowers Price Target
Piper Sandler reduced its price target on Salesforce to $250 from $280 while maintaining an Overweight rating, citing a modest miss on FY27 revenue growth guidance of 10.5% versus consensus of 11.1%, despite Q4 results slightly exceeding estimates.
2. RBC Capital Cuts Valuation Outlook
RBC Capital trimmed its price target to $210 from $290 and upheld a Sector Perform rating, noting revenue was in line with expectations, early Agentforce AI traction, but viewing shares as fully valued given the softer forward guidance.
3. Management Reaffirms Growth Drivers
Salesforce management reiterated Analyst Day outlook, highlighting robust bookings trends and improved customer retention driving net new annualized recurring revenue growth above average order value expansion, with AI-driven products showing promising early momentum.