Market experts are turning increasingly optimistic about Salesforce’s trajectory after a challenging period for the stock, which has declined approximately 30% year-to-date. A significant catalyst for this shift in sentiment is a prestigious new agreement with a U.S. federal agency, providing a substantial validation of the company’s strategic direction in artificial intelligence.
Analyst Confidence Soars with Revised Price Target
The positive developments have prompted a notable reaction from Wall Street. Analysts at Arete Research made headlines by significantly raising their price target for Salesforce from $415 to $475, reiterating their buy recommendation. From current trading levels, this new target implies a near-doubling of the company’s market value. This bullish stance is echoed by Mizuho Securities, which maintains a $340 price objective. Observers interpret these upward revisions as a signal that the market is underestimating the speed of Salesforce’s strategic execution.
Federal Deal Serves as Strategic Validation
A key driver behind the renewed analyst confidence is a recent contract win with the U.S. Department of Transportation (USDOT). The agency has selected Salesforce to assist in a foundational modernization project, aiming to consolidate over ten different legacy systems. The deal will utilize Salesforce’s new AI platform, “Agentforce.”
This government contract represents more than mere revenue for the software giant; it acts as a critical proof-of-concept. The company’s aggressive push into autonomous AI agents is now gaining traction not only in the private sector but also within the traditionally hard-to-penetrate public sector. This strategic validation comes just days after the release of the firm’s quarterly earnings.
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Operational Dynamics: Pricing Power and Executive Moves
Beyond the headline contract, Salesforce is leveraging its market position in other ways. Reports indicate the company plans to increase prices for third-party providers that access its proprietary data. This move is designed to better monetize its vast data reserves—a crucial asset for training AI models—and to fortify its competitive moat.
On the personnel front, the departure of a key executive presents a mixed picture. Denise Dresser, the former CEO of the Slack subsidiary, is leaving to join OpenAI. While this underscores the caliber of management talent at Salesforce, it also necessitates a search for new leadership for the vital communications service.
Valuation and Upcoming Catalysts
Currently, Salesforce shares are trading around the 200-day moving average of approximately 224 euros. In a historical context and when measured against the new analyst targets, this level could be viewed as an attractive valuation.
Investors now have several key dates on the horizon. The next major milestone is February 25, 2026, when Salesforce will report results for its fourth quarter and full fiscal year. This report will provide clarity on whether the new government contracts and the partnership with ASGN are beginning to materially impact financial performance. Before that, shareholders of record will receive a dividend of $0.416 per share on January 8.
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