Salesforce Faces Mixed Analyst Ratings Amid AI Advancements

In recent weeks, Salesforce Inc (NYSE:CRM) has been a focal point for investors as analysts weigh in on its performance amid a rapidly evolving AI landscape. The company has gained attention not only for its cloud-based Customer Relationship Management (CRM) solutions but also for its newly unveiled AI-powered platform, Agentforce.

On March 20, 2025, Steven Koenig from Macquarie maintained a Hold rating on Salesforce with a price target of $320.00. Koenig expressed optimism about the traction Agentforce is gaining, but he cautioned that mass market adoption of agentic AI will take time. Despite this, Salesforce ranks sixth on a list of AI stocks that are catching Wall Street’s attention, indicating a growing interest in its capabilities.

Salesforce is not alone in the AI sector. Beijing is reportedly boosting domestic AI firms, including Manus, a Chinese startup that recently made headlines with its claim of launching the world’s first general AI agent. Manus asserts that its AI can handle complex tasks with significantly less prompting than competitors like DeepSeek or ChatGPT. On March 20, state broadcaster CCTV featured Manus for the first time, highlighting the differences between its AI agent and DeepSeek’s chatbot.

Manus has also successfully registered its AI assistant, Monica, a requirement for generative AI applications in China. This registration marks an important regulatory milestone for the company, which has faced scrutiny over the originality of its technology. Critics have pointed out that Manus's product is based on existing large language models (LLMs), the specifics of which the team has not disclosed, contrasting with the innovation seen in DeepSeek’s foundation model.

As Salesforce navigates this competitive landscape, it is also witnessing shifts in institutional ownership. Elo Mutual Pension Insurance Co recently disclosed a 5.3% reduction in its stake in Salesforce during the fourth quarter, owning 87,243 shares worth approximately $29.2 million. This makes Salesforce the 25th largest holding in Elo's portfolio.

Other institutional investors have been more bullish. WINTON GROUP Ltd acquired a new position in Salesforce valued at $2.35 million, while Mitsubishi UFJ Asset Management Co. Ltd. increased its stake by 7.4%, now holding 1.6 million shares worth over $543 million. Korea Investment CORP and Aviso Wealth Management also raised their stakes in the company, reflecting a trend where hedge funds and institutional investors collectively own over 80% of Salesforce’s stock.

Salesforce shares opened at $280.93 on March 27, 2025, and have fluctuated between a twelve-month low of $212.00 and a high of $369.00. The company’s market capitalization stands at $269.97 billion, with a price-to-earnings (P/E) ratio of 46.21. Analysts have mixed opinions on Salesforce’s future performance. Robert W. Baird recently cut its target price from $430.00 to $400.00 while maintaining an “outperform” rating. Conversely, JPMorgan Chase raised its target from $340.00 to $380.00, giving the company an “overweight” rating.

While the general consensus among analysts remains a Moderate Buy, with a consensus price target of $362.74, some are more cautious. Wells Fargo analyst Michael Berg reiterated a Hold rating on Salesforce on March 27, setting a price target of $310.00, close to its current trading price.

Salesforce’s AI advancements, particularly with Agentforce, have positioned it as a significant player in the technology sector. However, the path to widespread acceptance of its AI solutions appears to be gradual. As the company continues to develop its offerings, the market will be watching closely to see if it can capitalize on the growing interest in AI technologies.

In related news, insiders at Salesforce have been active in trading their shares. CAO Sundeep G. Reddy sold 436 shares on January 23, 2025, at an average price of $332.28, totaling approximately $144,874.08. Similarly, insider Parker Harris sold 652 shares on the same day, valued at around $216,646.56. These transactions reflect a slight decrease in insider ownership, which currently stands at 3.20% of the company’s stock.

As the landscape of AI continues to evolve, companies like Salesforce and Manus are at the forefront, pushing boundaries and redefining what is possible in the tech space. With significant investments from institutional players and ongoing innovations, the future looks promising, albeit with challenges ahead.

Investors and analysts alike will need to stay alert as the situation develops, keeping a keen eye on how these companies adapt to the fast-paced world of artificial intelligence.