Bank of America upgrades Salesforce to buy, lifts target to $285 from $160
The reversal ends a rating that had stood since May, when the bank cut Salesforce to underperform over doubts about its AI strategy.
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Chart: CRM, daily closes since Apr
Bank of America raised its price target on Salesforce to $285 from $160 and upgraded the stock to buy from underperform.
The bank's prior underperform rating, set in May 2026 by analyst Tal Liani, had described Salesforce's AI transition as a structural reset, citing muted new customer additions, limited upsell potential and an unclear path to monetizing its Agentforce product, according to TheStreet. That downgrade had itself reversed an earlier buy rating, according to TIKR's blog. Salesforce shares had fallen about 33% year to date by mid-May 2026, trading at $179.69 against a 52-week high of $289.90, TheStreet reported.
Other firms had already turned more positive before today's move. BMO Capital Markets, Stifel, Canaccord Genuity, Citizens JMP, Stephens and Wells Fargo had raised their targets to between $250 and $315 by late September, pointing to optimism over Agentforce and AI-driven revenue growth, according to Stock Observer.
The upgrade follows a run of developments at Salesforce rather than a single event: a raised fiscal 2030 sales target above expectations, a $25 billion buyback announced in September that management framed as a sign of confidence in its cash generation, and expanding AI partnerships with Anthropic and OpenAI. That buyback alone represents nearly 18% of Salesforce's market capitalization, according to TheTechMarketer. The acquisition of Listen Labs adds another point to that expansion story. Bank of America's shift suggests the firm now views the AI monetization push and the capital return program as durable, rather than the product of one strong quarter.