RBC Capital Reduces PT on Salesforce (CRM) Stock

Salesforce, Inc. (NYSE:CRM) is one of the Best Reddit Stocks to Invest in Now. On September 4, RBC Capital reduced the price target on the company’s stock to $250 from $275, while keeping a “Sector Perform” rating, as reported by The Fly. Salesforce, Inc. (NYSE:CRM) posted a strong Q2 2026, with beats across the board, demonstrated by the continued strength in Data Cloud and AI. However, the analyst believes that the company’s Q3 2026 guidance was only in line with consensus, impacting the near-term upside in the stock.

Salesforce, Inc. (NYSE:CRM) saw revenue of $10.2 billion in Q2 2026, up by 10% YoY and 9% in constant currency. Its subscription & support revenue came in at $9.7 billion, reflecting 11% YoY and 9% CC growth. For Q3, 2026, the company expects revenue of $10.24 billion – $10.29 billion, up 8% – 9% YoY and 8% in CC. Salesforce, Inc. (NYSE:CRM)’s current remaining performance obligation stood at $29.4 billion, reflecting 11% YoY and 10% in CC growth.

Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:

“Salesforce, Inc. (NYSE:CRM) is a leading technology company that offers a collection of software products aimed at providing businesses with a full front office productivity suite. We believe Salesforce is a wonderful business going through a transformation into a profitable, shareholder-focused enterprise. Since management announced their renewed focus on operating discipline a couple years ago, Salesforce’s margins have increased substantially. In our view, there is further room to improve as the company leverages its unique position to help businesses deploy AI and continues to restructure its sales organization. Since exiting our position in Salesforce in December, the stock price has declined by over 30% despite continuing to report fundamental results that are in line with our expectations. We were pleased to buy the stock, but we first established our position using a put writing strategy to lower our entry price. We believed the puts were overvalued as they implied that Salesforce was among the most volatile large companies, which was completely at odds with our assessment of its business value.”

While we acknowledge the potential of CRM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.