JPMorgan gets bullish on Salesforce, says concerns are "overblown"

Investing.com -- JPMorgan initiated Salesforce (CRM) at Overweight, saying concerns weighing on the stock are "overblown" and that the shares are pricing in further deceleration rather than progress toward the company's Rule of 50 target.

Analyst Samik Chatterjee moved CRM to an Overweight rating from Not Rated and established a December 2027 price target of $250.

He said the favorable view is underpinned by "an expected acceleration in the core business in 2HF27," ending in January 2027, and by the view that fears about disruption from frontier AI models and competition "should be limited to a small portion of the business."

At the same time, JPMorgan said the valuation "looks inexpensive," as it is currently pricing in further deceleration in growth "rather than progress towards the Rule of 50 framework outlined by the company as a target for FY30."

The firm believes the primary driver of upside from current levels "will be led by a re-rating," the magnitude and timing of which will depend on a revenue growth acceleration.

However, Chatterjee said that even without an acceleration in revenue, JPMorgan sees upside "purely based on sustaining growth and margins," arguing the inexpensive multiple "stands counter to low double-digit revenue growth, leading margins, and an established market-leading position in the CRM market with Enterprises."

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