Salesforce Inc. (NYSE: CRM), a leader in cloud-based customer relationship management (CRM) solutions, has caught the attention of analysts following a recent pullback from its all-time high of $369 in December 2024.
This dip, attributed to broader market trends after a strong rally surrounding its AI platform, Agentforce, is seen as an attractive entry point for investors, according to TD Cowen analyst Derrick Wood.
As of the market close on January 17, Salesforce shares were trading at $324.56, reflecting a 12.20% decline from its December peak and a 5% loss over the past month.
Picks for you
TD Cowen sees opportunity amid pullback
TD Cowen recently upgraded Salesforce stock to ‘Buy’ from ‘Hold,’ with analyst Derrick Wood setting a $400 price target.
The analyst pointed to the company’s sharp year-end rally fueled by excitement surrounding its AI platform, Agentforce. Following this momentum, the recent pullback creates what Wood described as a ‘compelling entry point.’
Wood noted that Salesforce’s IT survey results screened highly favorable, with strong market interest in Agentforce, a customizable AI tool for businesses.
The firm acknowledged that while Agentforce’s revenue contribution in 2025 will likely be minimal, its impact on remaining performance obligations (CRPO) will become more pronounced in the second half of the year, laying the groundwork for revenue acceleration in 2026.
“In turn, our IT survey screened favorable for CRM, our recent checks have been highly constructive on interest levels of Agentforce, and we see several new growth levers emerging in the model for CY25/CY26. – the analyst noted
Additional growth drivers include SKU upgrades, a robust renewal pipeline, and inorganic expansion initiatives.
Meanwhile, Salesforce’s Data Cloud continues to expand, serving 25% of Fortune 100 companies, including IBM (NYSE: IBM), and playing a central role in the company’s broader AI strategy.
Broad support from Wall Street
Bank of America analyst Bradley Sills shares a similarly bullish outlook, assigning a price target of $440 and highlighting Salesforce’s leadership in AI-driven CRM solutions as a key advantage, recognizing it as a ‘top pick’ for 2025.
Needham & Co. also named Salesforce a ‘top pick’ for 2025, reiterating a $400 price target and citing CEO Marc Benioff’s focus on AI and the growing adoption of Agentforce.
Additionally, Wedbush analyst Dan Ives also views Salesforce as a key player in the rapidly growing AI space, which he predicts will see significant expansion in 2025.
In the third quarter of last year, Salesforce reported closing 200 paid deals for Agentforce and confirmed surpassing 1,000 paid deals for the platform by December 2024.
As Agentforce and Data Cloud gain traction, the company is well-positioned to deliver long-term value and capitalize on the growing demand for AI-powered CRM solutions.
Featured image via Shutterstock
