Salesforce Analyst Slashes Price Target By 14% To Reflect Broad-Based Macro Concerns In Front-Office Software - Salesforce (NYSE:CRM)

Wells Fargo analyst Michael Turrin maintained Salesforce Inc CRM with an Overweight and reduced the price target from $220 to $190.
Macro concerns are becoming more broad-based across front-office software this earnings season.
With Salesforce's recently lowered numbers on its FQ2 call, investor debate around the ROY setup has intensified.
Commentary from his recent round of checks is lending credence to growth-related investor concerns, with partners noting a meaningful shift in the demand environment and close rates beginning in late summer and early fall.
While Q3-specific commentary tilted negative (relative to FQ2), most partners still hope that Salesforce can rebound from a relatively muted FQ3 with a more decisive FQ4 close.
Post checks, Turrin's view tilts admittedly more cautious into the FQ3 print (and FQ4 and initial FY24 outlook). But given platform advantages in the current backdrop, the ability to lean into margin offsets, and signs of more tangible valuation support, we remain 'Overweight' while lowering his estimates and price target.
The price target is in line with 2-year historical averages for CRM, given the mix of growth and scale and his view that the company's overall profile can prove durable.
Price Action: CRM shares traded higher by 2.34% at $148.24 on the last check Tuesday.