Adam Wood cut Salesforce's price target 35% from $287 to $185, downgrading CRM to Equal Weight on timing concerns, not AI skepticism.
Agentforce's $3.4B annualized run rate is only 7% of Salesforce's $46B revenue base, too small yet to offset weakness in Commerce and Tableau.
CRM trades near 12 times earnings and is down 35% year to date, with buybacks providing a floor while the AI revenue inflection plays out.
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Morgan Stanley analyst Adam Wood cut Salesforce (NYSE:CRM) price target by 35% on July 21, 2026, Morgan Stanley analyst Adam Wood downgradedfrom Overweight to Equal Weight and slashed his Salesforce price target from $287 to $185, a reduction of roughly 35%. CRM stock fell as much as 3.9% intraday and closed at $170.06, down about 2.2% on a day the NASDAQ Composite rallied around 1.4%. It was the second ratings downgrade for Salesforce this month.
The key nuance: Wood is bullish on the leading indicators for Agentforce, Salesforce's agentic AI platform, and its adoption trajectory. His concern is timing and scale.
The disconnect is real. Agentforce momentum exists, but it has not yet shown up where it matters most for the stock: current remaining performance obligations, or cRPO, a key forward indicator of future subscription revenue. cRPO has stayed weak, signaling company-wide growth has not yet inflected.
Agentforce generated a $3.4 billion annualized revenue run rate last quarter. Against roughly $46 billion in total company revenue projected for the fiscal year, Agentforce is still only about 7% of the business, not yet large enough to offset drag from weaker legacy segments, specifically Commerce and Tableau.
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Wood still thinks Salesforce could emerge as an AI winner. He believes the inflection to company-wide organic growth will take longer than expected, and his lower target reflects compressed valuation multiples across the software sector. Salesforce continues pushing deeper into agents: in June 2026 it acquired Fin, a customer-service AI agent company built on an outcome-based pricing model and running on its own custom AI model, independent of the major AI labs.
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