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Salesforce (CRM) stock opened in the green on Thursday morning after a senior JPMorgan analyst said the software giant is trading at an attractive valuation multiple.
In a research note on Aug. 13, Samik Chatterjee upgraded CRM to “Overweight” and announced a $250 price target that indicates potential upside of more than 30% from here.
His bullish call brings good news to an otherwise beaten-down enterprise software firm, with CRM shares down more than 20% versus the start of this year at writing.
Salesforce Stock Is Inexpensive to Own
At less than 4x sales, Salesforce’s valuation looks overly punitive, “pricing in further deterioration” rather than execution toward the firm’s long-term targets, Chatterjee told clients.
According to the analyst, the current multiple does not reflect CRM’s resilient low-double-digit revenue growth and impressive operating margins.
In fact, Salesforce shares are inexpensive to own even without factoring in top-line acceleration in the second half of 2026, the JPM analyst added.
Even from a technical perspective, Salesforce stock currently sits above its major moving averages (MAs), with an RSI in the late 50s indicating intense buying pressure.
AI Concerns Are Overblown for CRM Shares
In his note, Chatterjee dismissed widespread artificial intelligence (AI) disruption concerns as well, arguing competition from AI solutions threatens only a minor portion of Salesforce’s core business.
He remains convinced that the giant’s financial performance will accelerate toward the Rule of 50 framework its management outlined on the latest earnings call.
All in all, given CRM’s deeply entrenched position across enterprise workflows, it remains notably insulated and stands to benefit from steady demand, the JPMorgan analyst concluded.
Note that Salesforce shares also currently pay a small dividend yield of 0.92%, which makes them even more attractive as a long-term holding.
Wall Street’s View on Salesforce
It's also worth mentioning that JPMorgan is not the only Wall Street firm that recommends buying CRM stock at current levels.
According to Barchart, the consensus rating on Salesforce sits at “Moderate Buy,” with the mean price target of about $250 indicating potential upside of more than 25% over the next 12 months.
