Stifel’s Salesforce verdict: price target trimmed to 325 while Buy rating kept, as near-term execution remains in focus despite AI optimism
Stifel analyst J. Parker Lane lowered Salesforce’s (CRM) price target to $325 from $375 but maintained a Buy rating, citing a cautious view on near-term performance even as he remains optimistic about the company’s AI-driven future. Salesforce stock ticked higher, rising about 2% on the session.
What’s driving the move
Lane spoke with several Salesforce partners following the fiscal second-quarter results (the quarter ended July 31). He found that business trends were steady to slightly better, helped by modest macro improvements and growing adoption of Agentforce, Salesforce’s AI-enabled platform. However, he noted the broader software sector remains under pressure, and Salesforce will need to demonstrate stronger sequential growth and clearer traction from its Data + AI segment—already hitting $1 billion in revenue last quarter—to justify a higher valuation.
Looking ahead, Lane plans to watch Dreamforce 2025, Salesforce’s flagship conference in October, for updates on the company’s AI strategy, pricing and packaging changes, and the performance metrics of Agentforce after a full year on the market. While he remains confident in Salesforce’s long-term growth trajectory, the price target cut reflects valuation considerations and the need for clearer near-term execution.
Salesforce’s AI push
Salesforce has been aggressively expanding its AI capabilities through partnerships and acquisitions to broaden accessibility and impact. The company recently deepened ties with Nice, incorporating Nice’s AI tools into Service Cloud to help customer-service teams automate tasks and deliver quicker, more context-rich responses. In collaboration with Nvidia, Salesforce is building smarter AI agents and avatars via its Agentforce platform to deliver more predictive and personalized experiences across sales, service, and marketing.
On the deal side, Salesforce has acquired Convergence.ai, which specializes in adaptive AI agents for navigating complex digital workflows, and Waii, a natural language-to-SQL startup. Salesforce is also pursuing what could be an $8 billion acquisition of Informatica, a leader in data integration and governance, moves that are expected to strengthen its AI infrastructure and data-management capabilities.
Is CRM a Buy, Sell, or Hold?
From a broker consensus perspective, CRM carries a Moderate Buy rating based on 33 Buys, 9 Holds, and 2 Sells over the past three months. The stock trades around $350, with the average price target suggesting substantial upside potential, underscoring that investors remain positioned for long-term AI-driven growth even as near-term execution takes center stage.
Summary
– Lane trims Salesforce’s price target to 325 while preserving a Buy rating, citing near-term execution concerns despite AI optimism.
– Salesforce’s AI strategy is advancing through partnerships (Nice, Nvidia) and selective acquisitions (Convergence.ai, Waii) plus a potential Informatica deal to bolster data capabilities.
– The stock’s modest near-term upside hinges on stronger sequential growth and better results from the Data + AI segment, with Dreamforce 2025 expected to provide updates on pricing, packaging, and AI progress.
– The consensus remains optimistic about Salesforce’s long-term AI-led growth, though investors should monitor quarterly results for clearer near-term momentum.