Investment firm TD Cowen upgraded software company Salesforce (CRM) from a Hold to a Buy rating and increased its price target from $380 to $400. Following the news, Salesforce shares gained at the time of writing.
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Five-star analyst Derrick Wood and his team highlighted that Salesforce’s recent pullback after a strong 2024 rally, which was driven by the excitement around its AI product Agentforce, presents an attractive buying opportunity. Their IT survey results were positive for Salesforce, and checks indicate that there is high interest in Agentforce. The analysts also identified new growth drivers for 2025-2026, which include SKU upgrades, a strong renewal pipeline, inorganic growth, and momentum with AI products.
Although Agentforce is expected to have a minimal impact on the firm’s revenue in 2025, Wood thinks that its contribution will increase in the second half of the year and potentially boost the company’s remaining performance obligations. In addition, the analyst anticipates that Agentforce will start contributing more significantly to revenue growth by 2026. It’s worth noting that, so far, Wood has enjoyed a 71% success rate on CRM stock, with an average return of 13.4% per rating.
Is CRM a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CRM stock based on 32 Buys, seven Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 20% rally in its share price over the past year, the average CRM price target of $396.94 per share implies 21.3% upside potential.
