Salesforce (CRM) is drawing attention from Wall Street analysts, who weigh its artificial intelligence (AI) roadmap against slowing growth and macro headwinds. Recently, Monness analyst Brian White reiterated a Hold rating on the stock despite the software company’s strategic push into AI.
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The five-star analyst pointed to Salesforce’s strong position in the AI space, especially with initiatives such as Agentforce, which aim to automate tasks and boost productivity. The company’s goal to enable one billion AI agents by 2025 shows long-term potential.
However, he noted that CRM’s overall growth remains “lackluster” in a competitive environment, and that current market dynamics warrant a wait-and-see approach.
What’s Next for Salesforce?
Overall, Salesforce stock is down 26% year-to-date, underperforming the S&P 500 Index’s (SPX) rally of 10%. Analysts say this reflects investor anxiety over the company’s ability to maintain double-digit growth amid rising competition.
Looking ahead, Salesforce’s upcoming earnings report, due for release on September 3, and its Dreamforce event might help win back investors’ trust. If the company is able to prove that AI is helping without hurting its main business, momentum could return.
Currently, Wall Street analysts expect CRM to report earnings of $2.78 in fiscal Q2, compared to $2.56 in the prior-year quarter. Also, the company’s revenue for Q2 is expected to rise by about 9% year-over-year to $10.14 billion.
Is CRM a Buy, Sell, or Hold?
Turning to Wall Street, CRM stock has a Moderate Buy consensus rating based on 33 Buys, 10 Holds, and one Sell assigned in the last three months. At $346.34, the average Salesforce stock price target implies a 39.94% upside potential.
