Citi Lowers Salesforce Price Target on Slower Deal Activity

Citi lowered its price target on Salesforce (CRM) to $240 from $260, while maintaining a Buy rating. The revision follows field data indicating slower transaction activity and increasing competitive pressures.

Rating Change

• Previous Price Target: $260
• New Price Target: $240
• Rating: Buy (maintained)

Analyst Rationale

The analyst cited field data showing a slowdown in deal activity, particularly among mid-market and enterprise customers. Increased competition from Microsoft and Oracle was also noted as a factor that could pressure Salesforce's revenue growth in the near term.

Context

The downgrade comes after Salesforce reported mixed quarterly results, beating revenue estimates but lowering forward guidance. The stock has lost about 15% year-to-date.

Notably, Ray Dalio's hedge fund still holds a significant position in Salesforce, ranking 5th in his portfolio with a 1.87% allocation, while NVIDIA (NVDA) remains his top holding.

What to Make of It

Despite the price target cut, the maintained Buy rating suggests Citi still sees long-term growth potential, especially as enterprises continue their cloud migration. However, investors should closely monitor deal activity and competitive dynamics in coming quarters.