DA Davidson Cuts PT on Salesforce, Inc. (CRM) Following Q1 Results
DA Davidson cut its Salesforce (CRM) price target to $175 from $200 on May 28, keeping a Neutral rating, after the firm said Salesforce’s fiscal Q1 results and updated guidance did not strengthen confidence in FY27 top-line acceleration. On the same day, BMO Capital reduced its target to $215 from $225 and kept an Outperform rating, citing limited changes to FY27 growth expectations.
Street expectations appear to be staying muted despite a “strong start,” with multiple firms trimming targets and signaling limited change to FY27 top-line growth.
DA Davidson cut Salesforce’s price target to $175 from $200 and kept Neutral after fiscal Q1 results and updated FY27 guide disappointed bulls.
Near-term upside may be capped; expect choppy trading around analyst-target revisions rather than a decisive catalyst.
Background
The piece summarizes two analyst actions (DA Davidson and BMO) following Salesforce’s fiscal Q1 results and updated guidance.
Why it matters
Target cuts and maintained ratings suggest the market may not receive a fresh re-rating catalyst from Q1/guidance alone; focus shifts to whether subsequent quarters prove top-line acceleration.
Market relevance
Material for CRM positioning because it reflects sell-side sentiment shifts immediately after Q1, potentially influencing near-term flows and options positioning.
Market effects
Signals continued skepticism toward enterprise cloud/CRM growth re-acceleration narratives until FY27 top-line evidence improves.
Primarily US large-cap software sentiment; limited direct regional spillover implied.
Global enterprise software investors may treat this as another datapoint that Q1 results/guidance are not yet re-rating catalysts.
Alternative perspectives
If bulls believe the updated guide still supports acceleration later in FY27, the target cuts may be an overreaction to near-term expectations rather than a fundamental deterioration.
The article emphasizes “limited changes” to FY27 top-line expectations; traders may want to check whether consensus estimates moved materially after the Q1 release, not just analyst targets.
Key entities
- companySalesforce, Inc.
Subject of the article; analyst price-target cuts after fiscal Q1 results and FY27 guidance interpretation.
- analyst_firmDA Davidson
Cut CRM price target to $175 from $200; maintained Neutral citing insufficient ammunition for bulls.
- analyst_firmBMO Capital
Cut CRM price target to $215 from $225; maintained Outperform, citing limited change to FY27 top-line growth expectations.
