Salesforce (CRM) stock is extending gains on Wednesday after Guggenheim analysts led by John DiFucci said it offers a favorable risk-reward at current levels.
On July 1, DiFucci upgraded the Software-as-a-Service (SaaS) company to “Buy,” and announced a bullish $228 price target, which signals potential upside of about 40% from here.
Guggenheim’s research report brings a much-needed reprieve to Salesforce shares, which are currently down more than 35% versus the start of this year.
Salesforce Stock Is Attractively Priced
John DiFucci’s positive stance on Salesforce is premised on a simple narrative — “AI will pressure CRM but not kill it.”
In a note to clients, the Guggenheim analyst acknowledged artificial intelligence as a “significant risk,” but said, “the Armageddon scenario currently priced into the stock is misaligned with reality.”
At roughly 3x sales, CRM shares currently present a highly compelling entry point, he added.
Note that Salesforce was also seen trading above its 20-day moving average (MA), indicating the bullish momentum could sustain in the near term.
And a 1.07% dividend yield makes CRM even more attractive as a long-term holding.
Fundamentals Warrant Buying CRM Shares
In his research note, DiFucci also cited the firm’s aggressive $25 billion accelerated share buyback program for the bullish view.
Moreover, its Agentforce autonomous AI platform defied skeptics by rapidly scaling to a whopping $1.2 billion in annual recurring revenue (ARR) at the end of Q1, outweighing lingering artificial intelligence disruption concerns.
It's also worth mentioning that the company insiders have recorded two “Buy” transactions this year and only one “Sell,” a subtle but meaningful signal of internal conviction at a time when investors are still recalibrating expectations around AI‑driven margin expansion.
All in all, Guggenheim agrees that AI presents a threat but believes the selloff in CRM has gone a bit too far in 2026.
Salesforce Remains Buy-Rated Among Wall Street Firms
Note that Guggenheim isn’t the only Wall Street firm that’s keeping bullish on Salesforce.
The consensus rating on CRM stock remains at “Moderate Buy,” with the mean price objective of about $255 indicating potential upside of nearly 45% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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