Salesforce rallies as analyst says its selloff went too far

Salesforce, Inc. (NYSE: CRM ) stock traded higher by more than 4% on Wednesday after an analyst upgrade.

The move stands out because the broader market is mixed, making stock-specific news the cleaner driver.

Salesforce drew a bullish upgrade from Guggenheim analyst John Difucci, who said the stock’s sharp decline has created an attractive entry point for investors.

Guggenheim Sees Valuation Upside Difucci upgraded Salesforce to Buy from Neutral and set a $228 price forecast.

The analyst said Salesforce trades at 3.7 times recurring revenue and 11 times enterprise value to next-12-month consensus free cash flow.

At the same time, the new forecast implies a 5.0x multiple on enterprise value to next-12-month recurring revenue and about 46% upside.

AI Risk Looks Overpriced Difucci said AI remains a major risk and that Salesforce could face pressure from agentic AI, but he believes the stock already prices in an overly negative outcome.

The analyst said Salesforce may struggle to grow much, but the current valuation implies a permanent 5% decline, which he views as too harsh.

Technical Analysis Even with Wednesday’s pop, CRM is still in a longer-term downtrend: it’s trading about 22.7% below its 200-day SMA ($212.65) and remains below its 50-day SMA ($174.82) and 100-day SMA ($181.38).

The bearish crossover setup reinforces that—its 20-day SMA is below the 50-day SMA, and the 50-day SMA is below the 200-day SMA.

Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the September 2, 2026 (estimated) earnings report.

EPS Estimate: $3.09 (Up from $2.91 YoY) Revenue Estimate: $11.31 Billion (Up from $10.24 Billion YoY) Valuation: P/E of 18.2x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $245.00.

Recent analyst moves include: Guggenheim: Upgraded to Buy (Forecast $228.00) (July 1) Needham: Buy (Maintains Forecast to $400.00) (June 16) Canaccord Genuity: Buy (Maintains Forecast to $225.00) (June 16) Top ETF Exposure SmartETFs Advertising and Marketing Technology ETF (NYSE: MRAD ): 4.11% Weight iShares Expanded Tech-Software Sector ETF (BATS: IGV ): 6.68% Weight First Trust DJ Internet Index Fund (NYSE: FDN ): 4.07% Weight Significance: Because CRM carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

Price Action CRM Stock Price Activity: Salesforce shares were up 4.75% at $164.10 at the time of publication on Wednesday, according to Pro data.

Photo: Shutterstock Read Also: Why Is Western Digital Stock Gaining Tuesday?