BMO Trims Salesforce Price Target to $335, Maintains Outperform Rating

BMO Capital has reduced its price target on Salesforce to $335 from $350, while maintaining an Outperform rating. Analyst Keith Bachman cited tempered expectations for the company's newer initiatives, such as Data Cloud and Agentforce, despite generally favorable feedback from the field. Salesforce's valuation remains compelling, with projected high single-digit revenue growth and a broad suite of enterprise applications. The lowered price target reflects near-term caution, but not a shift in BMO's overall positive view on Salesforce's strategic direction.

BMO Capital has recently reduced its price target on Salesforce (CRM) to $335 from $350, while maintaining an Outperform rating on the stock. The adjustment reflects tempered expectations for the company's newer initiatives, such as Data Cloud and Agentforce, despite generally favorable feedback from the field. Analyst Keith Bachman, in a note to clients, highlighted concerns about the pace of adoption and the timeline for meaningful revenue contribution from these new products. He noted that while investor enthusiasm around Salesforce’s AI-driven offerings is high, translating innovation into financial performance often takes time.

Salesforce, the leading provider of on-demand Customer Relationship Management (CRM) software, continues to benefit from its broad suite of enterprise applications and embedded customer relationships. The company's projected high single-digit revenue growth and stable base make its valuation compelling. Despite the lowered price target, BMO's overall positive view on Salesforce’s strategic direction remains unchanged. The stock has been relatively stable in recent months, trading below its 52-week high but holding gains made earlier in the year.

While Salesforce's AI-focused platforms are being integrated and scaled, analysts like Bachman are encouraging investors to focus on the company's long-term potential rather than short-term acceleration. The lowered price target reflects near-term caution, but not a shift in the firm’s overall positive view on Salesforce's strategic direction.

References:
[1] https://finance.yahoo.com/news/why-salesforce-com-crm-top-134502368.html
[2] https://ca.finance.yahoo.com/news/bmo-trims-salesforce-crm-price-161815216.html