Salesforce's (CRM) price target has been cut to $325 by Stifel analyst Parker Lane, but the firm maintains a Buy rating. The analyst believes Salesforce needs to show improved quarter-over-quarter performance in core and a solid uptick in Data plus AI contributions to drive multiple appreciation. Salesforce is one of the Must-Watch AI Stocks on Wall Street and is seen as a long-term growth opportunity.
Salesforce, Inc. (NYSE: CRM), a prominent player in the AI stock market, has seen its price target reduced by Stifel analyst Parker Lane. The new target is set at $325.00, down from the previous $375.00, while maintaining a Buy rating [1].
The analyst believes that Salesforce must demonstrate improved quarter-over-quarter performance in its core business and a substantial increase in Data plus AI contributions. According to Lane, Salesforce would need to achieve a significant uptick in these areas to drive multiple appreciation. The analyst acknowledges the potential of CRM as an investment but suggests that certain AI stocks may offer greater upside potential and carry less downside risk.
Salesforce's focus on AI and its integration into various business processes has positioned it as a long-term growth opportunity. The company's AI Metadata Service (AIMS) has been instrumental in enhancing the reliability and low-latency performance of AI inferences across its platform [2]. The recent improvements in AIMS, including the implementation of a multi-layer caching system, have significantly reduced latency and improved system resilience.
Despite the price target reduction, Salesforce's stock is still seen as a strong investment by many analysts. The company's strong fundamentals, innovative AI technologies, and robust business model continue to attract investors. However, the market's expectations for improved performance in core and AI contributions will be crucial in determining the stock's future trajectory.
References:
[1] https://finance.yahoo.com/news/salesforce-crm-price-target-cut-223433434.html
[2] https://engineering.salesforce.com/how-salesforce-delivers-reliable-low-latency-ai-inference/
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