Cantor Fitzgerald reiterates Salesforce stock rating on AI potential

Cantor Fitzgerald maintained an Overweight rating and $250.00 price target on Salesforce.com (NYSE:CRM), which is currently trading at $205.47. The stock is considered undervalued according to the company's Fair Value assessment, with a PEG ratio of 0.6. Salesforce has underperformed the broader software sector, down 19% year-to-date, while the EMCLOUD index has gained 20%, and the S&P 500 has risen 12%.

The firm attributes this underperformance to market skepticism about Salesforce's growth acceleration in the second half of the fiscal year and AI-related concerns as a horizontal SaaS platform. However, Cantor Fitzgerald believes this view is overstated and expects Salesforce to capture a significant share of next-generation agentic workflows as a key system of record.

Enterprise customers prioritize security, governance, compliance, and data sovereignty, and Salesforce is expected to continue investing in multiple models with a strategy for monetization. Investors can find more insights in the Pro Research Report available for Salesforce and 1,400+ other US equities on InvestingPro. Salesforce is preparing to release its second-quarter earnings, with Oppenheimer and Monness, Crespi, Hardt maintaining positive ratings and raising the price target to $250.00.

Salesforce has also shown interest in acquiring Indian HR software developer Darwinbox, valued between $1.8 billion and $2.0 billion, and has partnered with American Public Education to develop an AI-powered Student Lifecycle Platform.