Truist Adjusts Salesforce Price Target to $380 Amid Sector-Wide Valuation Concerns, Holds Buy Rating

Truist has revised its price target for Salesforce (CRM) to $380, marking a reduction from a previous, unspecified level. The adjustment comes amid growing concerns over valuation across the software and enterprise technology sectors, particularly for high-growth SaaS companies. Despite the downward revision, Truist continues to rate CRM as a 'Buy', underlining confidence in the company's recent financial performance. The firm's decision is anchored in Salesforce's robust Q3 results, which demonstrated resilient revenue growth and strong execution across its core platforms. Key indicators such as Average Order Value (AOV) have shown sustained expansion, signaling improved pricing power and customer retention. These metrics suggest the company is effectively monetizing its platform ecosystem, even in a tighter macro environment. The $380 target implies a moderate upside potential from current trading levels, depending on market sentiment. While the downgrade reflects a more cautious stance on sector multiples, the persistent 'Buy' rating underscores that fundamental drivers—product innovation, customer expansion, and recurring revenue—remain intact. Investors are likely to focus on upcoming earnings guidance to assess whether AOV momentum can continue. The adjustment may influence trading behavior in the technology sector, particularly among investors weighing SaaS valuations against growth forecasts. Salesforce’s stock, along with peers in the enterprise software space, could experience increased volatility as market participants reassess risk-return profiles in response to shifting valuation norms.