Needham maintains Buy rating, $400 target on Salesforce stock

Published 25/04/2025, 12:22
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On Friday, Needham analysts maintained their Buy rating and a $400.00 price target for Salesforce.com shares (NYSE:CRM), currently trading at $264.70, following observations from the recent Agentforce World Tour event in Minneapolis. According to InvestingPro data, analysts broadly share this bullish outlook, with targets ranging from $243 to $442. The firm’s analysts highlighted Salesforce’s expansion in agentic innovations and the company’s focus on customer service applications.

Salesforce showcased a range of new features and upcoming enhancements at the event, emphasizing its commitment to developing a comprehensive platform for agents. The company, which maintains impressive gross profit margins of 77.2% and generated $37.9 billion in revenue over the last twelve months, has introduced live agents across five product categories, with customer service use cases dominating at 87%. In response to this demand, Salesforce is integrating new functionalities specifically for Scheduling and HR within the customer service agent framework.

The bulk of the innovations presented were aimed at establishing a robust platform for agents. This includes improved integration capabilities, multi-channel and multi-modal offerings, and advanced AI testing functionalities. Needham analysts pointed out that the new AI feedback functionality is particularly significant for optimizing the performance of agents on a large scale.

The sustained Buy rating and price target reflect confidence in Salesforce’s strategic direction and its potential for growth, particularly in the realm of artificial intelligence and customer service solutions. Salesforce’s efforts to enhance its platform with agent-centric innovations are expected to solidify its position in the market and drive future success.

In other recent news, Salesforce has reported several significant developments. Truist Securities has maintained its Buy rating for Salesforce, setting a price target of $400, highlighting the robust growth of Salesforce Industries, which saw a 20% increase in annual recurring revenue for the fiscal year 2025. Meanwhile, DA Davidson downgraded Salesforce’s stock from Neutral to Underperform, expressing concerns over the company’s strategic focus on artificial intelligence at the expense of its core business. Guggenheim Securities upgraded Salesforce’s stock from Sell to Neutral, noting that the recent decline in stock price aligns with the company’s future prospects.

Salesforce has also announced a 4% increase in its quarterly dividend, raising it to $0.42 per share, reflecting confidence in its financial stability. A Salesforce report emphasizes the importance of AI agents for retailers, with 76% planning to increase investment in AI over the next year. The report indicates that AI agents could help retailers manage rising costs and changing consumer preferences. The study also highlights the potential of unified commerce to enhance AI capabilities and improve customer experiences. These recent developments underscore Salesforce’s ongoing efforts to adapt and grow amidst a challenging market environment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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