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Salesforce Stock Soars on Analyst Double-Upgrade
13 Oct
Summary
- BofA Securities upgraded Salesforce to Buy from Underperform.
- Analyst cites CIOs view on core platform displacement difficulty.
- AI tools expected to deepen customer lock-in and boost spending.
Salesforce (NYSE:CRM) experienced a notable pre-market stock increase of 4.1% following a double upgrade from BofA Securities, which moved the stock from Underperform to Buy and substantially increased its price target to $285 from $160.
Analyst Tal Liani cited discussions with enterprise chief information officers who indicated that displacing deeply integrated core platforms, containing vital business logic and compliance data, is highly improbable. This insight led to a significant upward revision of BofA's price target.
Liani also shifted his perspective on artificial intelligence's impact, now believing that agentic tools will fortify customer lock-in rather than disintermediate software seats. This enhanced customer retention, coupled with the company's robust free cash flow and Agentforce revenue, supports BofA's raised valuation multiple.
Despite an initial surge, Salesforce shares later settled, trading up 2.6% from the previous close. The stock has seen volatility over the past year, with significant single-day moves common. Year-to-date, Salesforce shares have declined 7.3%, trading below their 52-week high.
