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The fair value estimate for Salesforce stock has been adjusted from US$248.24 to US$241.72, a relatively small move that still signals a shift in how the story is being modeled. This change sits against mixed Street commentary, with some analysts encouraged by Agentforce, Fin and large government wins, while others focus on slower core growth and open questions around AI monetization. As you read on, you will see how these differing views shape the evolving Salesforce narrative and what that means for tracking the stock from here.
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What Wall Street Has Been Saying
🐂 Bullish Takeaways
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Several firms, including Evercore ISI, TD Cowen, Baird, Canaccord, Barclays and Deutsche Bank, point to Salesforce’s AI products such as Agentforce, Fin and broader AI annual recurring revenue as important parts of the story, even if current contributions are described as limited in context.
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Jefferies and Truist highlight the Fin acquisition and broader M&A activity as a way for Salesforce to support AI adoption in its customer base, with Jefferies also flagging cash levels that it views as reasonable after recent deals.
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Monness Crespi, Guggenheim and BMO describe investor sentiment and valuation as reset, with Monness Crespi referring to depressed valuation and strong cash flow generation and Guggenheim arguing that an extreme AI bear case on software does not align with its analysis.
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RBC and Deutsche Bank argue that incumbent software such as Salesforce can be more resilient than some AI displacement narratives suggest, with RBC focusing on total cost of ownership rather than just subscription price versus custom build costs.
🐻 Bearish Takeaways
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BofA, Morgan Stanley, Phillip Securities and Bernstein focus on slower growth in core Salesforce products, muted net new customer additions and questions around AI monetization, with BofA and Phillip Securities both referencing concerns about the broader application software sector as well.
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KeyBanc and Wells Fargo flag mixed customer feedback and surveys, limited evidence of acceleration in metrics such as annual order value and constant currency growth, and suggest Salesforce shares could trade in a range unless growth trends change.
Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there’s more to the story. Head to the Simply Wall St Community to discover more perspectives!
