Investing.com-- TD (TSX:TD) Cowen analysts have upgraded Salesforce Inc's (NYSE:CRM) rating and raised their price target, citing optimism over the company’s role in the expanding "Agentic AI" cycle.
Analysts highlighted compelling growth opportunities tied to Salesforce's Agentforce platform and improvements in its financial outlook.
The brokerage upgraded the rating to "Buy" from "Hold," raising PT to $400 from $380.
"We think CRM is an attractive asset to own to get exposure to Agentic AI, at a reasonable valuation," TD Cowen analysts wrote.
According to the TD Cowen research note, Salesforce shares, which saw strong momentum late in 2024, have since pulled back, presenting an attractive entry point for investors.
The firm’s IT spending survey for 2025 was highly favorable for Salesforce, showcasing its strong positioning, analysts said in a note.
Analysts expect robust adoption of the Agentforce platform, with key feedback from partners citing its ease of use, strong value proposition, and market readiness.
A large global systems integrator (GSI) anticipates 40% customer adoption by late 2025. Additionally, the halo effect of Agentforce is bolstering interest in other Salesforce products like Data Cloud, Mulesoft, and Einstein Copilot, TD Cowen stated.
TD Cowen also anticipates that fading 2024 headwinds and new tailwinds—such as SKU upgrades and renewed AI momentum—will drive stronger financials.
Analysts project Salesforce achieving 10% revenue growth and a 35% free cash flow (FCF) margin by 2026, aligning the company with a "Rule of 45" metric and possibly aspiring to hit 50.