Investing.com -- Wedbush analysts raised their price target for Salesforce.com (NYSE:CRM) from $315 to $325 in a note Friday, reflecting increasingly positive feedback from customers and the company's expanding role in AI.
The upgrade is driven by Salesforce's strong performance in the AI sector and its ability to leverage its product portfolio for transformative growth.
Wedbush's note points to a notable shift in customer sentiment, which is contributing to their more bullish outlook on Salesforce.
According to the firm, "more customers are seeing elevated use cases for CRM's entire product portfolio," which is enhancing automation and efficiency within organizations.
The firm's Outperform rating on the stock remains unchanged as Salesforce continues to be a top pick in the tech sector.
One of the key drivers behind the target increase is Salesforce's Agentforce strategy, which is capitalizing on the growing demand for AI solutions.
The updated Agentforce platform, now known as Atlas (NYSE:ATCO), is reported to deliver impressive results. Wedbush said customers have noted a 2x improvement in accuracy, a 33% reduction in AI hallucinations, and faster implementation timelines compared to leading models.
"Customers are noting solid results from the updated version of Agentforce (named Atlas) is seeing ~2x accuracy, 33% hallucination improvement and faster implementation timelines vs. leading models with CRM aims to use agents to take action on information," Wedbush states.
Wedbush also emphasizes the significant opportunity in AI monetization, estimating that it could potentially boost Salesforce's revenue by over $4 billion annually by 2025.
"The AI monetization story at CRM will be a key growth catalyst," the analysts wrote. This growth is expected to be further supported by CRM's enhanced data cloud capabilities, which harmonize data and provide robust security and governance.