DA Davidson raised its price target on Salesforce to $200 from $175 while maintaining a Neutral rating, citing accelerating adoption of the company’s AI tools and second-quarter results that exceeded expectations.
The new target represents roughly 13 times the firm’s projected fiscal 2028 earnings per share and compares with Salesforce’s closing price of $205.62 on Tuesday. The stock trades at a PEG ratio of 0.6, according to DA Davidson.
Salesforce reported non-GAAP earnings per share of $5.90 for the second quarter of fiscal 2027, well above the $3.27 consensus estimate, while revenue rose 11% year-over-year to $11.345 billion. The company raised its full-year revenue guidance to a range of $46.1 billion to $46.4 billion, implying organic growth of 7%-8% on a constant currency basis. Free cash flow for the quarter increased 81% to $1.1 billion.
The analyst cited the launch of Claudeforce, an AI agent developed in partnership with Anthropic, as a key driver of demand. Salesforce also highlighted usage metrics for Agentforce and Slack as evidence of growing enterprise adoption of its AI offerings. Gross profit margins over the last twelve months stood at 77.6%.
DA Davidson’s revision follows a series of upward target adjustments from other firms. Jefferies raised its target to $300 with a Buy rating, Bernstein lifted its target to $195 while maintaining an Underperform rating, and Citizens reiterated a Market Outperform rating with a $315 price target.
