Salesforce (NYSE:CRM) Maintains "Overweight" Rating by Morgan Stanley with a Raised Price Target

• Morgan Stanley reaffirms its "Overweight" rating for Salesforce (NYSE:CRM), raising the price target from $393 to $404.
• Salesforce reports strong Q1 fiscal 2026 results with sales of $9.83 billion, surpassing consensus projections.
• Despite a positive earnings report, Salesforce's stock price has seen a decline, currently at $256.40, down 7.11%.

On May 29, 2025, Morgan Stanley maintained its "Overweight" rating for Salesforce (NYSE:CRM), a leading player in the cloud-based software industry. At the time, the stock was priced at $273.13. Morgan Stanley also raised Salesforce's price target from $393 to $404, indicating confidence in the company's future performance. Salesforce is known for its customer relationship management software and competes with companies like Microsoft and Oracle.

Salesforce recently reported its Q1 fiscal 2026 results, showcasing strong financial performance. The company achieved sales of $9.83 billion, surpassing the consensus projection of $9.75 billion. This marks a significant increase from the $9.13 billion reported in the same quarter last year. Salesforce's ability to consistently exceed revenue expectations highlights its robust position in the software industry.

In terms of earnings, Salesforce reported $2.58 per share, exceeding the Zacks Consensus Estimate of $2.54. This represents an improvement from the $2.44 per share reported in the same quarter last year. The earnings surprise for this quarter was 1.57%. Over the past four quarters, Salesforce has outperformed consensus EPS estimates three times, demonstrating its strong financial management.

Despite the positive earnings report, Salesforce's stock price has experienced a decline. The current stock price is $256.40, reflecting a decrease of $19.63 or 7.11%. Today, the stock has fluctuated between a low of $254.50 and a high of $266.50. Over the past year, CRM has reached a high of $369 and a low of $212, indicating some volatility in its stock performance.

Salesforce's market capitalization stands at approximately $246 billion, with a trading volume of 8.2 million shares on the NYSE. The company's consistent ability to surpass market expectations, as highlighted by its recent earnings report, supports Morgan Stanley's decision to maintain an "Overweight" rating and raise the price target.