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Investing.com - BMO Capital has lowered its price target on salesforce.com (NYSE:CRM) to $335.00 from $350.00 while maintaining an Outperform rating on the stock. Currently trading at $266.46, the company maintains impressive gross profit margins of 77.3% and has demonstrated solid financial health, according to InvestingPro analysis.
The firm cited a lack of near-term catalysts for the cloud-based software company, particularly regarding its AI initiatives such as Agentforce, which BMO views as a long-term opportunity rather than an immediate revenue driver.
BMO Capital noted that while Agentforce and Salesforce’s broader AI capabilities will "require investor patience for revenue impact," the company still maintains an attractive valuation relative to its high single-digit growth potential.
The research firm also mentioned providing feedback on Data Cloud and Agentforce in its analysis, along with broad estimates on Salesforce’s AI revenue potential.
Despite the reduced price target, BMO Capital’s maintained Outperform rating suggests continued confidence in salesforce.com’s overall business trajectory and long-term prospects.
In other recent news, Salesforce has made significant strides with its financial and strategic initiatives. Cantor Fitzgerald has reiterated its Overweight rating on Salesforce stock, maintaining a price target of $325.00, citing customer traction with the company’s Agentforce product and a planned 6% price increase as potential drivers for future growth. Similarly, KeyBanc has also maintained an Overweight rating with a higher price target of $440.00, discussing the potential acquisition of Informatica, which could address data challenges for Salesforce’s AI initiatives. Meanwhile, Citizens JMP has reiterated its Market Outperform rating and a $430.00 price target following CEO Marc Benioff’s comments that AI now handles 30% to 50% of work at Salesforce.
In governance developments, Salesforce announced the appointment of Amy Chang and David Kirk to its Board of Directors, bringing extensive experience in technology and innovation. Chang has held leadership roles at companies like Cisco (NASDAQ:CSCO) and Google (NASDAQ:GOOGL), while Kirk has been recognized for his work in parallel computing and graphics hardware. These appointments were described as timely by Arnold Donald, Lead Independent (LON:IOG) Director, given the evolving landscape of AI and digital business transformation. Collectively, these developments highlight Salesforce’s ongoing efforts to bolster its technological capabilities and market position.
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