Salesforce stock rating reiterated at Market Outperform by JMP despite 26% YTD drop

Investing.com - JMP Securities analyst Patrick Walravens has reiterated a Market Outperform rating and $430 price target on Salesforce.com (NYSE:CRM), despite the stock falling 26% year-to-date compared to the S&P 500’s 13% gain.

The reaffirmation follows a presentation by Hubbl Technologies CEO Rob Acker, a former Salesforce executive, and Hubbl co-founder Mike Bogan at JMP’s San Francisco offices. Hubbl is described as a rapidly growing AI software company operating within the Salesforce ecosystem. InvestingPro data reveals that 24 analysts have revised their earnings upward for the upcoming period, suggesting strong business momentum. Discover 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

JMP highlighted Hubbl’s argument that while Salesforce’s AI assistant "Agentforce works," many organizations aren’t properly prepared to implement it due to disorganized data structures and technical debt within their Salesforce instances.

The analyst noted a case study from Barracuda Networks, where Hubbl’s optimization tools reportedly prevented the company from abandoning Salesforce, instead making it "AI-ready" and increasing usage "10-fold" alongside expanded license spending, including Agentforce.

According to JMP’s research, Salesforce implementation partners and account executives are increasingly recognizing the importance of organizational health before AI implementation, with some requesting Hubbl diagnostic scans prior to meetings with major Salesforce customers.

In other recent news, Youxin Technology Ltd announced its acquisition of a 51% stake in Celnet Technology Co., Ltd., China’s largest Salesforce partner, for approximately RMB 5.24 million (US$736,461) in cash. This move includes additional equity and cash incentives linked to performance targets. Meanwhile, Salesforce.com has been the subject of several analyst updates. BNP Paribas Exane reiterated an Outperform rating on Salesforce, highlighting the addition of 2,000 new paying Agentforce customers quarter-over-quarter. CFRA lowered its price target for Salesforce to $300 from $375, maintaining a Strong Buy rating, citing a favorable price-to-earnings ratio. Despite a Buy rating and a $335 price target from TD Cowen, Salesforce’s stock fell approximately 6% after-hours. RBC Capital also adjusted its price target for Salesforce to $250 from $275, maintaining a Sector Perform rating. Salesforce reported strong second-quarter results, with key metrics exceeding expectations, driven by significant growth in its Data Cloud and AI offerings.

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