Cautious Hold on Salesforce Amid Mixed Demand Signals and Awaiting Impact of Strategic Changes

In a report released today, Tyler Radke from Citi maintained a Hold rating on Salesforce (CRM – Research Report), with a price target of $320.00.

Tyler Radke’s rating is based on a combination of factors that suggest a cautious approach towards Salesforce’s stock. Despite some positive indicators, such as interest in Agentforce and potential FX tailwinds, there are mixed signals regarding overall demand. While there is strong interest in Agentforce, its current impact is limited, and the core CRM demand shows variability with some areas experiencing growth and others facing declines.
Additionally, while Salesforce is making efforts to simplify pricing and enhance transparency, the full impact of these changes is yet to be seen. The company’s revenue growth is expected to remain in the high-single-digits, and despite a slight beat in cRPO growth, the overall engagement and top-of-funnel demand appear weaker. These factors contribute to a Hold rating as the analyst awaits more substantial data on wider rollouts and commercialization before becoming more optimistic about Salesforce’s growth prospects.

Based on the recent corporate insider activity of 224 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRM in relation to earlier this year.