Analyst downgrades Salesforce to Equal Weight, citing weak cRPO despite AI platform growth potential.
Morgan Stanley reduced Salesforce’s price target by 35% to $185 and downgraded the stock to Equal Weight, citing timing issues rather than skepticism over its AI strategy. The move follows concerns over weak current remaining performance obligations (cRPO), a key revenue indicator, despite momentum in Agentforce, Salesforce’s AI platform.
Salesforce’s $3.4 billion annualized run rate for Agentforce represents just 7% of its $46 billion revenue base, insufficient to offset declines in Commerce and Tableau. The stock trades near 12 times earnings and has fallen 35% year-to-date, with buybacks providing support amid AI revenue expectations.
CRM shares dropped as much as 3.9% intraday before closing at $170.06, underperforming the NASDAQ Composite’s 1.4% gain. This marks the second downgrade for Salesforce this month.