Salesforce (CRM, Financial) just scored a bullish upgrade from TD Cowen, which bumped its rating from Hold to Buy and lifted its price target to $400. The firm sees a prime opportunity after Salesforce's recent dip, calling it a solid bet for investors looking to ride the AI wave. The big catalyst? Agentforce—Salesforce's AI-driven platform that's catching serious enterprise interest. TD Cowen's IT survey signals strong demand, and analysts think this is just the beginning of a bigger AI cycle.
Sure, Agentforce won't move the revenue needle much in early 2025, but that's set to change fast. A major global systems integrator expects 40% customer adoption by late 2025, and momentum is already spilling over into other Salesforce products like Data Cloud, Mulesoft, and Einstein Copilot. Analysts also see fading headwinds from 2024 and fresh growth drivers—think SKU upgrades, AI expansion, and a strong renewal pipeline—fueling long-term gains.
The numbers look solid, too. TD Cowen is projecting 10% revenue growth and a 35% free cash flow margin by 2026, putting Salesforce in prime position to hit the coveted Rule of 45 metric (and maybe even push for 50). Bottom line? Salesforce isn't just an AI play—it's shaping up to be a long-term winner for investors betting on the next wave of enterprise AI adoption.
