CRM could cover more than 30% thanks to the latest AI push, says Bank of America
Salesforce shares have more upside in store as the software giant unveils its latest AI, according to Bank of America. The bank raised its price target on the stock to $440 from $390, representing a 33% gain from late Tuesday, after the company raised third-quarter revenue estimates and issued upward guidance for the fourth quarter. Shares rose more than 13% on the results and look poised to add to a 26% year-to-date gain. “Q3 results suggest the company is at the forefront of the AI cycle for Agent and Agentforce,” wrote analyst Brad Sills. “Comments about the pipeline suggest reasonable customer interest in the weeks following the October release. Again, this nascent product cycle is not hampering margin expansion, with a net 10 bps increase in FY25.” Looking ahead, he sees a “healthy pipeline” of agency deals that could fuel continued growth in the fourth quarter, while margin results show the company is pursuing a “balanced growth philosophy.” Agentforce refers to a new AI-powered chat platform. Other Wall Street giants also raised their price targets after the results, with JPMorgan moving to a $380 target. Goldman Sachs analyst Kash Rangan raised his price target to $400 per share, saying it’s a “great set of stability.[s] [the] development phase [near-term] growth profile.” “We reiterate our confidence in Salesforce’s ability to deliver $15-16 FCF/Share in CY26 as investors gain confidence in the sustainability of high growth, supported by Salesforce’s AI strategy across a broad customer base (~135k) and strong proposition of data-driven value,” he said. The company also looks well positioned to become a “strategic software company” and the Dollars 50 billion in revenue, adding that “With room for upside in both revenue and expected valuation, relative to reasonable multiples, we’re consistently picking this GenAI winner,” Morgan Stanley’s Keith Weiss wrote as he raised his target to $405 from $330 share. .CRM YTD Shares this year However, some analysts remain very cautious on the stock Wells Fargo analyst Turrin reiterated his equal weight rating while raising his price target to $345 from $330 a share “CRM’s 3Q results were enough to keep Agentforce’s attention,” he wrote “However, keep waiting [Agentforce Focus] the offering is more than appreciated and hard to underwrite with Data Cloud + pricing and packaging that is driving 10%+ growth right now.”
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