Salesforce Price Target Increased by Wedbush

Date: Investing.com —
Wedbush analysts raised their price target for Salesforce.com (NYSE:CRM) from $315 to $325 in a note released on Friday. This increase reflects increasingly positive feedback from customers and the company’s expanding role in AI.

Positive Growth in AI Sector

The upgrade is driven primarily by Salesforce’s strong performance in the AI sector and its ability to leverage its product portfolio for transformative growth. Wedbush’s note highlights a notable shift in customer sentiment, contributing to a more bullish outlook on Salesforce.

According to the firm, “more customers are seeing elevated use cases for CRM’s entire product portfolio,” enhancing automation and efficiency within organizations.

Maintaining Outperform Rating

Wedbush has kept its Outperform rating on the stock, reaffirming that Salesforce continues to be a top pick in the tech sector.

Agentforce and Atlas Strategy

One key driver behind the target increase is Salesforce’s Agentforce strategy, which capitalizes on the growing demand for AI solutions. The updated platform, now known as Atlas (NYSE:ATCO), reportedly delivers impressive outcomes. Customers have noted a 2x improvement in accuracy, a 33% reduction in AI hallucinations, and faster implementation timelines compared to leading models.

Wedbush states, “Customers are noting solid results from the updated version of Agentforce (named Atlas) with ~2x accuracy, 33% hallucination improvement, and faster implementation timelines versus leading models.”

Revenue Potential from AI Monetization

Wedbush also emphasizes the significant opportunity in AI monetization, estimating that it could boost Salesforce’s revenue by over $4 billion annually by 2025. “The AI monetization story at CRM will be a key growth catalyst,” the analysts predicted. This growth is expected to be supported further by CRM’s enhanced data cloud capabilities, which harmonize data while providing robust security and governance.