Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - KeyBanc Capital Markets shared key insights from its annual West Coast Bus Tour, noting that enterprise AI adoption is accelerating as vendors integrate more deeply into customer workflows.
The tour, which included visits to several software companies in the Bay Area, revealed that enterprise AI implementation differs significantly from consumer applications, with companies like Rubrik, Salesforce, and Autodesk showing progress in workflow integration.
For Salesforce (NYSE:CRM), a prominent player in the software industry with impressive gross profit margins of 77.65% and a perfect Piotroski Score of 9 according to InvestingPro, KeyBanc reported that Agentforce usage is ramping up but remains in early stages, with new innovations expected to be announced at the upcoming Dreamforce conference. Many early users are increasing usage, though extensive implementation at a proactive agentic level hasn’t yet materialized. With an overall financial health score rated as "GREAT" by InvestingPro analysts, the company appears well-positioned to execute its AI strategy.[Want deeper insights? InvestingPro subscribers get access to 10 additional ProTips and comprehensive financial analysis for Salesforce, along with 1,400+ other stocks.]
Rubrik (NASDAQ:RBRK) executives reinforced the growth opportunity from newer workloads such as identity and SaaS, while Asana (NYSE:ASAN) emphasized that its AI Studio product is gaining traction primarily with existing customers but will have less material impact on overall growth this year. Based on InvestingPro’s Fair Value analysis, Salesforce is currently trading below its Fair Value, suggesting potential upside opportunity for investors interested in the enterprise AI space.[Discover more investment opportunities with InvestingPro’s Most Undervalued Stocks list and access detailed Pro Research Reports for comprehensive analysis.]
Autodesk (NASDAQ:ADSK) discussions focused on the company’s increasing AI ambitions and consumption model, with KeyBanc noting that the transaction model could contribute "at least a couple points to reported revenue growth next year" while maintaining confidence in Autodesk’s ability to expand margins despite transaction model headwinds.
In other recent news, Salesforce has been making headlines with various developments. The company has been in the spotlight as Stifel lowered its price target for Salesforce to $300, maintaining a Buy rating, citing concerns about top-line improvement and AI monetization. Meanwhile, Truist Securities reiterated its Buy rating with a $400 price target, suggesting potential catalysts for investor sentiment. JMP Securities also maintained a Market Outperform rating with a $430 price target, despite a 26% year-to-date drop in Salesforce’s stock.
In collaboration news, Salesforce has partnered with Haleon to enhance pharmacy engagement globally, using Salesforce technology to provide data-driven insights to Haleon’s sales force. In a security-related update, Salesforce informed its customers that it will not pay a ransom to the hacker group ShinyHunters, which threatened to release stolen client data. These developments come as Salesforce prepares for its annual Dreamforce conference, a key event for the company and its stakeholders.
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