Salesforce: TD Cowen upgrades to ‘Purchase’, raises PT on AI development prospects

Investing.com– TD Cowen analysts have upgraded Salesforce Inc’s (NYSE:CRM) score and raised their worth goal, citing optimism over the corporate’s position within the increasing “Agentic AI” cycle.

Analysts highlighted compelling development alternatives tied to Salesforce’s Agentforce platform and enhancements in its monetary outlook.

The brokerage upgraded the score to “Purchase” from “Maintain,” elevating PT to $400 from $380.

“We expect CRM is a lovely asset to personal to get publicity to Agentic AI, at an affordable valuation,” TD Cowen analysts wrote.

In keeping with the TD Cowen analysis be aware, Salesforce shares, which noticed robust momentum late in 2024, have since pulled again, presenting a lovely entry level for buyers.

The agency’s IT spending survey for 2025 was extremely favorable for Salesforce, showcasing its robust positioning, analysts stated in a be aware.

Analysts anticipate sturdy adoption of the Agentforce platform, with key suggestions from companions citing its ease of use, robust worth proposition, and market readiness.

A big international methods integrator (GSI) anticipates 40% buyer adoption by late 2025. Moreover, the halo impact of Agentforce is bolstering curiosity in different Salesforce merchandise like Knowledge Cloud, Mulesoft, and Einstein Copilot, TD Cowen said.

TD Cowen additionally anticipates that fading 2024 headwinds and new tailwinds—reminiscent of SKU upgrades and renewed AI momentum—will drive stronger financials.

Analysts venture Salesforce attaining 10% income development and a 35% free money stream (FCF) margin by 2026, aligning the corporate with a “Rule of 45” metric and presumably aspiring to hit 50.