Salesforce Service Cloud Expected to Experience Accelerated Growth with New AI Offerings and Upsell Opportunities

Analyst Bradley Sills from Bank of America Securities maintains a Buy rating on Salesforce, expecting accelerated growth for its Service Cloud. Sills anticipates a 9% growth rate rebound and potential trend towards 12% in the long term, driven by upsell of add-on offerings and new Agentforce AI offering. The Service Cloud is projected to outperform competitors and achieve a 9% CAGR, with potential for 12% in an optimistic scenario.

Salesforce's Service Cloud is expected to experience significant growth in the coming quarters, according to analyst Bradley Sills from Bank of America Securities. Sills maintains a Buy rating on Salesforce, with a price target of $350, and expects the Service Cloud to rebound to a 9% growth rate, potentially trending towards 12% in the long term [1].

The Service Cloud, a significant part of Salesforce's business, has shown a recent slowdown but is poised for reacceleration. Sills attributes this optimism to the upsell of add-on offerings and the new Agentforce AI offering. These elements are expected to capture significant incremental growth, with Service Cloud projected to outperform competitors. The integration of intuitive interfaces, robust customization, and analytics capabilities further strengthens its market position.

In a long-term outlook, Sills estimates a compound annual growth rate (CAGR) of 9% for Service Cloud, with potential for 12% in an optimistic scenario. This growth is driven by increased user growth and penetration, as well as revenue from Agentforce for Service Cloud.

Another analyst, Citizens JMP, also reiterated a Buy rating on the stock with a $430 price target, further validating Salesforce's growth prospects [2].

References:
[1] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/07/46400858/salesforces-ai-moves-could-skyrocket-service-cloud-revenue
[2] https://www.tipranks.com/news/ratings/salesforce-service-cloud-poised-for-accelerated-growth-with-new-ai-offerings-and-upsell-opportunities-ratings