Wedbush reiterates its outperform rating on Salesforce (CRM.US): AI new product is well received by customers, shares could rise another 17%

Wedbush reiterates its "Outperform" rating on Salesforce (CRM.US) and raises its price target to $325 from $315, implying 17% upside from current levels, saying the new product Agentforce, which allows customers to build and deploy self-service AI agents that can handle various tasks, resonated with customers. Agentforce will be fully rolled out on October 25. Wedbush analyst Daniel Ives said: "Based on recent surveys and extensive conversations with Dreamforce customers, the company's AI strategy is now resonating strongly with its core customer base. The company offers an agent-first ecosystem that allows customers and employees to interact across applications while providing an extended full-stack manager." Ives added: "In our view, one of the biggest moves in the space is around monetizing the AI theme on top of Salesforce's massive installed base, as I believe this is a significant market opportunity that could significantly benefit Salesforce in the coming years, estimated to add over $4 billion in total revenue annually." Wedbush sees Salesforce as a secondary beneficiary of the AI revolution. Wedbush expects its stock price to rise about $40 over the next 12 to 18 months as its AI monetization story takes shape. However, Seeking Alpha analyst Yiannis Zourmpanos gave Salesforce a "Hold" rating, as he found the company's valuation high while revenue growth is slowing. He recently said: "Despite the slowdown in sales growth, the company still proved its strength through strong profitability while expanding its footprint in AI and multi-cloud solutions. Salesforce is boldly moving in these innovative areas, laying a good foundation for the future. However, due to the high valuation and slowing growth, investors must consider whether its stock price is still reasonable, so we give Salesforce a Hold rating." Overall, Wall Street analysts gave Salesforce a "Moderate Buy" rating, with an average price target of $309.71, implying 12% upside from current levels.