BofA Reinstates Salesforce Coverage with Underperform Rating
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: seekingalpha
- Coverage Reinstatement: BofA has reinstated coverage on Salesforce (CRM) with an Underperform rating and a $160 price target, citing a 'structural reset' driven by the AI transition that may impact future performance.
- Customer Growth Slowdown: Analysts expect muted net new customer additions, as AI automation in front-office functions leads to rationalization of seat counts, thereby limiting the company's upsell potential.
- Revenue Growth Forecast: Salesforce is projected to grow revenues by 11.1% in fiscal year 2027 and 9.6% in fiscal year 2028, with stable margins between 34% and 35%, indicating stability as the company matures.
- Increased Competitive Risks: The automation of AI-driven workflows poses competitive pressures from companies like Google, Shopify, and Adobe, which analysts believe could negatively impact Salesforce's growth and pricing power.
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Analyst Views on CRM
Wall Street analysts forecast CRM stock price to rise
39 Analyst Rating
29 Buy
9 Hold
1 Sell
Moderate Buy
Current: 176.310
Low
223.00
Averages
326.40
High
405.00
Current: 176.310
Low
223.00
Averages
326.40
High
405.00
About CRM
Salesforce, Inc. is a customer relationship management (CRM) technology company. Its artificial intelligence (AI) powered Agentforce 360 Platform offers sales, service, marketing, commerce, collaboration, data management, integration, analytics, and information technology (IT) service solutions. It enables customers to build and deploy digital labor for employees and customers, leveraging autonomous AI agents across business functions. Its service offerings include Agentforce Sales, Agentforce Service, Agentforce 360 Platform, Slack and Others. The Agentforce Sales provides sales capabilities and tools built for organizations across prospecting, sales engagement, team collaboration, sales analytics and AI, sales programs, sales performance, partner management, and revenue and orders. The Agentforce Service provides field service solutions that enable companies to connect service agents, dispatchers and mobile employees through platform to schedule, dispatch and manage jobs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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