Erste Group has downgraded Salesforce (CRM) stock’s rating to Hold from Buy, citing concerns over slower revenue and profit growth in the current year. CRM is a cloud-based software company that provides tools for customer service, marketing, analytics, AI, and app development.
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The firm highlighted that Salesforce remains a leader in customer service, marketing automation, and AI-driven data analysis, which helps it increase revenue and operating margins.
However, Erste Group noted that growth is slowing, with revenue and net profit expected to be lower than last year. Further, the firm believes that Salesforce’s sales growth is lagging behind competitors, leading to a lower price-to-earnings (P/E) ratio compared to the sector average.
Not the Only Bad News
Alphabet’s (GOOGL) Google has warned about a sophisticated voice phishing operation, UNC6040, that is actively targeting Salesforce users. At least 20 companies across the U.S. and Europe have been targeted, with industries like retail, hospitality, and education being hit hardest.
The attackers pretend to be Salesforce staff and call employees, leading them to a fake setup page where they give hackers access without knowing. Once installed, the app allows hackers to steal private data, sometimes waiting months before demanding a ransom.
Salesforce has acknowledged Google’s alert, stating that “There’s no indication the issue described stems from any vulnerability inherent to our services.”
But the company said that these attacks are targeted social engineering scams that aim to exploit gaps in individual users’ lack of cybersecurity knowledge.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 34 Buys, nine Holds, and three Sells assigned in the last three months. At $350.30, the average Salesforce stock price target implies a 33.11% upside potential.

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