Salesforce CEO: AI Does 50% of Work, JMP Reiterates Stock Rating
By : Sandhya
Investing.com – JMP Securities has reaffirmed its Market Outperform rating and maintained a $430 price target for Salesforce (NYSE: CRM) following recent remarks by CEO Marc Benioff, who revealed that artificial intelligence is currently handling 30% to 50% of tasks within the company, including software engineering and customer service.
In a conversation with Bloomberg’s Emily Chang, Benioff underscored the growing reliance on AI at Salesforce, which continues to post robust gross profit margins of 77.3%, as highlighted by InvestingPro’s financial analysis.
JMP analyst Patrick Walravens noted their research supports strong returns from Salesforce’s Agentforce and other AI applications, particularly in customer service roles. The firm also referenced ongoing evaluations of AI tools by mid-sized clients, though some customers found Glean more plug-and-play for sales purposes due to its native integration with Salesforce, Outlook, and Gong.
Key AI Developments at Salesforce:
Agentforce 3 launched: Introduced a new Command Center for real-time AI monitoring and optimization.
Improved metrics for early adopters: Faster case resolution and more autonomous chat handling.
Price hike announced: 6% increase for Enterprise and Unlimited Editions.
New AI pricing plans: Tailored add-ons and Slack upgrades to boost AI adoption.
8,000 customers onboarded for Agentforce, with AI usage up 233% in six months.
Other analysts remain bullish:
Cantor Fitzgerald: Maintains Overweight rating with a $325 target, citing pricing power and AI expansion.
Truist Securities: Reiterates Buy rating with a $400 target, noting confidence in AI-driven subscription growth.
Is Salesforce Undervalued?
Despite growing buzz, some market tools like InvestingPro suggest Salesforce may not top the list of undervalued stocks. However, its strategic AI investments and robust financials signal long-term potential for investors.