# Salesforce Stock Rises Following Double-Step Analyst Upgrade to Buy

- URL: https://stocks.freetheai.org/news/salesforce-stock-rises-following-double-step-analyst-upgrade-to-buy-701e7b
- Published: 2026-10-12T11:18:53Z
- Category: analyst_ratings; sentiment: bullish; impact: medium
- Symbols: [NYSE:CRM](https://stocks.freetheai.org/symbols/NYSE-CRM)
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Salesforce, Inc. (NYSE:CRM) shares traded higher on Monday following an analyst rating upgrade to Buy from Underperform. The stock's price target was raised significantly to $285 from $160, reflecting an increased valuation of 16 times projected 2027 free cash flow, compared to 9 times under previous estimates and above the industry peer average of 15 times.

The rating change stems from expectations that enterprise clients will rely more heavily on established software platforms as they adopt artificial intelligence tools rather than replacing them. Established platforms that handle critical business processes, compliance, and data management are positioned to capture value across AI services. Additional operational tailwinds include rising annualized order values, steady progress at Slack, and updated forecasts for subscription and support revenue growth, which are now projected at 10.4% in fiscal 2028 and 10.5% in fiscal 2029.

Investors should monitor the pace of commercial enterprise AI adoption. Because direct revenue generated from AI features remains relatively small for Salesforce today, any potential delays in corporate adoption present a key near-term risk to projected revenue acceleration.

## Key points

- Salesforce, Inc. (NYSE:CRM) stock was upgraded to Buy from Underperform, with its price target raised from $160 to $285.
- The $285 target values the company at 16 times estimated 2027 free cash flow, above the peer average of 15 times.
- Subscription and support revenue growth projections were increased to 10.4% in fiscal 2028 and 10.5% in fiscal 2029.
- Improving business momentum is supported by higher annualized new order values and stronger performance at Slack.
- Slow enterprise AI adoption remains a primary near-term risk as current AI-driven revenue stays small.

## Questions and answers

### Why did Salesforce stock rise?

Salesforce stock rose following an analyst upgrade to Buy from Underperform and a price target increase from $160 to $285 based on strong corporate AI integration prospects.

### What is the new price target for Salesforce?

The new price target for Salesforce is $285 per share, up from $160, valuing the stock at 16 times expected 2027 free cash flow.

### What are the main risks for Salesforce regarding AI?

The main near-term risk is slower-than-expected AI adoption by corporate clients, as direct revenue generated from AI tools remains relatively small.