Bernstein Raises Salesforce (CRM) Price Target to $255, Keeps Underperform Rating
On May 29, Bernstein raised the firm's price target on Salesforce, Inc. (NYSE:CRM) to $255 from $243 while keeping an Underperform rating on the shares.
The analyst updated his rating after Salesforce, Inc. (NYSE:CRM) released its fiscal Q1 2026 earnings on May 28, reporting a revenue of $9.8 billion, an 8% year-over-year growth.
Photo by Austin Distel on Unsplash
Operating cash flow for the quarter reached $6.5 billion, rising 4% year-over-year. Free cash flow also experienced a 4% year-over-year growth to reach $6.3 billion.
These results prompted Bernstein to note that Salesforce, Inc. (NYSE:CRM) delivered very much of an "in-line quarter," missing consensus on margins but beating on revenue. The company also raised its full-year guidance by $400 million to $41.3 billion at the high end of the range. According to the analyst, FX accounted for a significant portion of the revenue beat and the full-year guidance increase.
However, the quarter's biggest story for the analyst was the announcement of the $8 billion deal in which Salesforce, Inc. (NYSE:CRM) is acquiring Informatica to boost its position in the AI domain. Bernstein stated that the deal was a reasonable acquisition at a reasonable price.
While we acknowledge the potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about the .
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