Salesforce Analysts Update: Ratings Drop and Growth Challenges

Salesforce (CRM) sees mixed analyst rankings. With recent downgrades and revenue growth challenges, investors should tread cautiously. Notably, analysts show declining price targets, raising concerns about Salesforce's future performance.

Date: 18-03-2025

AI Rating: 5

Analyst Sentiment Towards Salesforce

Salesforce recently received varied opinions from 30 analysts, highlighting a shift in sentiment with a notable number of ratings being lowered. A breakdown of the ratings reveals that while there are still some bullish voices, there has been a clear trend towards bearishness, particularly in the last 30 days.

Revenue Growth

Salesforce reported a revenue growth rate of approximately 7.6% as of January 31, 2025. While this indicates an increase in earnings, it falls short when compared to industry averages, potentially signaling challenges in maintaining competitive growth.

Net Margin

The company's net margin is favorable at 17.09%, which reflects effective cost management and a strong financial position relative to operational expenditures.

Return on Equity (ROE)

Salesforce's ROE stands at 2.85%, which is below industry standards. This suggests ongoing difficulties in maximizing shareholder equity, which may concern existing and potential investors regarding long-term returns.

General Analyst Findings

Overall, the number of analysts expressing bearish sentiments has increased, with recent downgrades from various firms indicating a cautious perspective on Salesforce's stock performance. Average price targets have also shown a downward trend, declining from $384.63 to $367.7. Such indicators may lead investors to reevaluate their positions or take a more conservative approach.

Stocks: CRM