Salesforce upgraded to Buy with $200 target as ARR hits $2.3 billion
CRM•Monness, Crespi, Hardt raised Salesforce to a Buy rating from Neutral with a $200 12-month price target following a 41% decline this year that drove valuation into compelling territory. The upgrade cites over 100% YoY organic ARR growth to $2.3 billion in Agentforce & Data 360 and record Slackbot adoption.
1. Rating Upgrade and Price Target
Salesforce’s rating was increased from Neutral to Buy with a 12-month price target of $200, reflecting a view that the stock’s recent decline has created an attractive valuation entry point.
2. Q1 FY27 ARR Growth
During Q1 FY27, Agentforce & Data 360 organic ARR grew over 100% year-over-year to $2.3 billion, with Agentforce ARR alone rising 205% to $1.2 billion, highlighting robust AI-driven demand.
3. Stock Performance and Valuation
Shares have fallen 41% in 2026 and 58% since late 2024, positioning Salesforce among the worst performers in its coverage universe yet offering what analysts see as a discounted entry given its margin profile and cash flow.
4. New AI Features
Slackbot, launched in January, has become Salesforce’s fastest-growing feature, while the April rollout of Headless 360 demonstrates continued innovation in the company’s AI product suite.
