Salesforce Is Ready to Rebound With Analysts Forecasting Upside

Key Points

• Salesforce stock is down but not out; this market reached bottom in April and will rebound strongly.
• Analysts reset stock price targets but did not reverse sentiment on this Buy-rated company.
• Cash flow and capital returns are fundamental to the stock price outlook.

Salesforce’s NYSE: CRM stock price corrected more than 35% from its high to its low in Q2 2025 and could certainly move lower, but is unlikely to do so. The stock price reset is primarily due to fears of a slowdown in the global economy, compounded by analyst price target adjustments, and factoring in the worst of a worst-case scenario.

The critical takeaways are that this fundamentally sound software business is viewed as one of the most resilient in a downturn, generates robust cash flow, and pays its shareholders, so it is unlikely to stay down for long. 

Analysts Reset Price Targets: Forecast Robust Upside for CRM Stock

Analysts reset their price targets for Salesforce stock but did not change their sentiment. If anything, the sentiment has firmed due to upgrades, while the price target reductions have narrowed the range around the consensus figure. The consensus forecasts a 45% upside from the critical support level, and the March and April revisions concur. 

MarketBeat tracks 11 analysts' updates in March and the first three weeks of April, including five price target reductions, two reiterations, and an upgrade. The takeaway is that there is a bullish bias to the Moderate Buy rating and growing conviction that CRM stock should be trading at or very near its recent highs, not near a 52-week low. 

The valuation metrics also suggest a robust rebound is in store for Salesforce’s stock price. The company grew at a high single-digit pace in FY2024 and is expected to sustain this growth through the middle of the next decade.

The outlook is likely low due to AI's influence on expectations and dampened market sentiment in H1 2025, which amplifies the value. The stock trades at only 22x its 2025 earnings forecast, a significant discount relative to recent averages and much lower relative to 2030 and 2035 forecasts. This suggests the stock could rise by 35% to 100% over the next few years, and all it will take is a catalyst. 

Due to results and broader macroeconomic conditions, a catalyst is possible in 2025. Results tend to outperform MarketBeat’s reported consensus, and the company generates robust cash flow regardless. Regarding macroeconomic conditions, the tariff threat remains, but indications from Washington suggest de-escalation and opportunities for big trade deals. In that scenario, analysts could start lifting targets quickly and lead this stock to a new high. 

Salesforce's Cash Flow and Balance Sheet Are Why You Own It

Salesforce's leadership position in AI-enabled CRM services and automation enables significant revenue and cash flow. The company also focuses on quality and is supported by trends, including increasing client counts and deeper market penetration. Revenue is stable, with subscriptions tied to annual contracts and long-term services.

The critical details are that the company is profitable, produces positive free cash flow, maintains a fortress balance sheet, and returns capital to shareholders. 

The capital return is substantial and fundamental to the stock price outlook. The yield is low, at around 0.6%, even with the share price decline, but it is a safe investment, and the distribution is expected to grow. Growth is likely due to the low 15% payout ratio, a positive outlook for earnings growth, an increase at the end of last year, and share buybacks, which are reducing the share count.

Buybacks reduced the count by 1.0%, reducing the number of shares payable in 2024, and may accelerate in pace this year. 

Salesforce Bottoms and Readies to Rebound

Salesforce's stock price decline reached its bottom in mid-April and is preparing for a substantial rebound. The market is oversold at this level and shows increasing support above a critical level, with the stochastic showing a solid buy signal and bearish momentum peaking.

The market could rebound to as high as $275 to $290 by mid-year in this scenario, and potentially higher if there is good news, such as tariff or interest rate relief.