TLDR
- Guggenheim upgraded Salesforce (CRM) to Buy from Neutral with a $228 price target
- CRM stock is down nearly 41% year-to-date, currently trading around $156.66
- Guggenheim says the “Armageddon scenario” priced into the stock is unrealistic
- The $228 target implies roughly 46% upside from current levels
- Salesforce recently agreed to acquire Fin (formerly Intercom) for approximately $3.6 billion
Guggenheim upgraded Salesforce (CRM) to Buy from Neutral on Wednesday, setting a price target of $228 — roughly 46% above where the stock currently trades.
CRM is sitting at around $156.66, down nearly 41% year-to-date. The selloff has been driven by fears of a so-called “SaaSpocalypse” — the idea that AI will gut demand for traditional SaaS platforms.
Guggenheim thinks that fear has gone too far.
The firm pointed to a valuation of 3.7 times recurring revenue and 11 times enterprise value to next-twelve-months free cash flow as an attractive entry point. The stock also carries a P/E ratio of 18.2 and a PEG ratio of 0.46, which suggests it’s trading at a discount to its near-term earnings growth.
Guggenheim’s $228 target is based on 5.0 times enterprise value to next-twelve-months recurring revenue.
Not a Bull Call on AI — Just a Reality Check on Valuation
The firm was clear: this is not a call that Salesforce will win with AI. Guggenheim still views agentic AI as a real risk to the business, and says there is no visible product traction or meaningful revenue contribution from AI in channel conversations or reported numbers.
What the firm does believe is that the current stock price implies Salesforce’s revenue declines 5% into perpetuity — and that’s the part they call a “hallucination.”
Their base case is more modest: Salesforce struggles to grow much, but doesn’t fall apart either.
Recent Moves at Salesforce
Salesforce recently announced it will acquire Fin, formerly known as Intercom, for approximately $3.6 billion. The deal brings in AI-driven customer support tools and is expected to expand Salesforce’s capabilities across live chat, email, and Slack.
Following that announcement, Citizens kept a Market Outperform rating with a $315 price target. UBS held its Neutral rating at $185.
Separately, Monness, Crespi, Hardt also upgraded CRM to Buy from Neutral, citing a similar valuation argument after the stock’s steep decline.
Salesforce also announced a partnership with the Visa Cash App Racing Bulls Formula 1 Team, using its Agentforce 360 platform and Slack to support fan engagement and team operations.
Anthropic launched Claude Tag, a feature that brings its AI assistant into Slack — relevant given Salesforce’s ownership of the platform.
Guggenheim’s upgrade adds to a growing chorus of analysts who see the current price as disconnected from the company’s actual outlook, even if the long-term AI story remains uncertain.
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