Salesforce (CRM) Price Target Trimmed Amid Broader Software Weakness

Salesforce, Inc. (NYSE:CRM) is one of the  Buzzing AI Stocks on Wall StreetOn September 4, KeyBanc analyst Jackson Ader lowered the price target on the stock to $400.00 (from $440.00) while maintaining an Overweight rating.

According to the firm, there is a persistently negative narrative surrounding the application software sector which also seems to be impacting Salesforce shares regardless of the company’s actual performance.

It further noted how throughout the recent earnings season, software companies were facing downward pressure regardless of their reported results.

“Stocks are not companies and companies are not sectors, but it feels to us like the shares of Salesforce are the linear embodiment of the application software sector.”

A financial advisor in a pinstripe suit sitting at his desk, looking at a laptop with graphs and charts.

“No matter what the current state of the Company, the narrative is negative and just about impossible to disprove. We are wrapping up an earnings season where it almost didn’t matter what the results were, weakness was to follow. When the terminal value is being questioned, a point of constant currency outperformance in the quarter simply isn’t the answer.”

Salesforce, Inc. (NYSE:CRM) is a cloud-based CRM company that has gained popularity after it unveiled its AI-powered platform called Agentforce.

While we acknowledge the risk and potential of CRM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CRM and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 AI Stocks to Watch Out For in 2025 and 10 AI Stocks Gaining Attention on Wall Street.

Disclosure: None.