CRM can rally more than 30% thanks to latest AI push, Bank of America says

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CRM can rally more than 30% thanks to latest AI push, Bank of America says

Salesforce shares have more upside in store as the software giant rolls out its latest AI push, according to Bank of America. The bank lifted its price target on the stock to $440 from $390, reflecting 33% upside from Tuesday’s close, after the company topped third-quarter revenue estimates and issued upbeat fourth-quarter guidance. Shares surged more than 13% on the results and looked poised to add to a 26% year-to-date gain. “Q3 results suggest that the company is leading the way in agentic AI cycle with Agentforce,” wrote analyst Brad Sills. “Commentary on pipeline suggests meaningful customer interest in the weeks following October release. Also, this emerging product cycle is not derailing margin expansion, with a net 10 bps raise for FY25.” Looking ahead, he views a “healthy pipeline” of agent deals as capable of powering ongoing upside into the fourth quarter, while margin findings signal that the company is undertaking a “balanced growth philosophy.” Agentforce refers to the company’s new AI-powered chatbot platform. Other major Wall Street shops also boosted their price objectives in the wake of the results, with JPMorgan moving to a $380 target. Goldman Sachs analyst Kash Rangan lifted his target to $400 a share, saying that a “stabilizing macro set [the] stage for improving [near-term] growth profile.” “We reiterate our conviction in Salesforce’s ability to deliver $15-16 FCF/Share in CY26 as investors gain confidence in the sustainability of topline growth, supported by Salesforce’s AI strategy across a broad customer base (~135k) and strength of its data-driven value proposition,” he said. The company also looks well situated to become one of the “most strategic application software companies” and hit $50 billion in revenues, he added. “With room for upside in both forward revenue and margin expectations, against a reasonable multiple, we remain OW this GenAI winner,” wrote Morgan Stanley’s Keith Weiss as he lifted his target to $405 from $330 a share. CRM YTD mountain Shares this year Still, some analysts remain more cautious on the stock. Wells Fargo analyst Michael Turrin reiterated his equal weight rating while lifting his price target to $345 from $330 a share. “CRM’s 3Q results were enough to keep attention on Agentforce,” he wrote. “However, continue to expect [Agentforce Focus] contribution further out than appreciated & hard to underwrite Data Cloud + pricing & packaging driving 10%+ growth in the interim.”

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