Investing.com– Salesforce Inc (NYSE:) was upgraded by analysts at TD Cowen and raised their price target, citing optimism about the company’s role in expanding the “Agentic AI” cycle.
Analysts highlighted compelling growth opportunities associated with Salesforce’s Agentforce platform and improvements in financial outlook.
The brokerage increased the rating to “Buy” from “Hold”, raising the PT to $400 from $380.
“We think CRM is an attractive asset to own to gain exposure to Agentic AI, at a reasonable valuation,” TD Cowen analysts wrote.
According to a TD Cowen research note, Salesforce shares, which saw strong momentum in late 2024, have since retreated, presenting an attractive entry point for investors.
The company’s IT spending survey for 2025 was very favorable for Salesforce, showing its strong position, analysts said in a note.
Analysts expect strong adoption of the Agentforce platform, with key feedback from partners citing its ease of use, strong value proposition and market readiness.
A major global systems integrator (GSI) predicts 40% user adoption by the end of 2025. Additionally, Agentforce’s halo effect is fueling interest in other Salesforce products such as Data Cloud, Mulesoft and Einstein Copilot, TD Cowen said.
TD Cowen also predicts that headwinds in 2024 will ease and new tailwinds – such as SKU upgrades and renewed AI momentum – will drive stronger financial results.
Analysts predict that Salesforce will achieve 10% revenue growth and a 35% free cash flow (FCF) margin by 2026, aligning the company with the “Rule 45” metric and possibly aiming to reach 50.
