Salesforce Stock Could See More Short-Term Headwinds

Baird hit the blue-chip software stock with a bear note

Digital Content Manager
Dec 8, 2022 at 9:37 AM
facebook twitter linkedin

Shares of Salesforce Inc (NYSE:CRM) are inching lower this morning, last seen down 0.8% at $129.38, following a bear note from Baird. The analyst downgraded the stock to "neutral," and slashed its price target by $50 to $150. The brokerage noted the upcoming departure of Salesforces' co-CEO, announced earlier this month, and said the software company's macro environment still looks rocky. Baird pointed out that this potent combination could have negative effects on CRM's revenue in the near term. 

When news broke that co-CEO Bret Taylor decided to resign, we also pointed out that downbeat seasonality could provide an additional layer of headwinds on the charts. So far, these predictions have been true. CRM gapped below recent support at the $150 level shortly after the news, and hit a series of two-year lows in the aftermath. In fact, the equity is eyeing another two-year bottom today, adding to its more than 48% year-to-date deficit. 

More analysts could follow Baird's lead. Of the 32 in coverage, 25 considered the equity a "buy" or better, heading into today. What's more, the 12-month consensus price target of $199.27 is a 53.9% premium to last night's close. 


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners