Salesforce cut to Underperform, removed from ‘Best-of-Breed’ list at DA Davidson

As previously reported, DA Davidson downgraded Salesforce (CRM) to Underperform from Neutral with a $200 price target down from $250, and removed the stock from the firm’s “Best-of-Breed Bison” list. The firm believes Salesforce is neglecting its core business in an effort to pursue a “premature AI opportunity,” says the analyst, who expects further deceleration in the organic growth of the non Data/AI clouds to be the catalyst for underperformance. Agentforce may not even fit the definition of an AI agent and “appears to be more an addition of AI capabilities to existing tools,” according to the analyst, who believes AI revenue “may be overstated.”