Salesforce (CRM) Stock Near 52-Week Low as BofA Flags AI Monetization Concerns

TLDR

• Bank of America reiterated an Underperform rating on Salesforce (CRM) with a $160 price target, implying roughly 8% downside from current levels.
• BofA cited three concerns: weak new customer growth, limited upsell potential, and a poor AI monetization pathway.
• CRM opened at $173.77 on Monday, near its 52-week low of $163.52, and is down around 25% over the past six months.
• Despite the bearish call, CRM holds a Moderate Buy consensus among analysts with an average price target of $274.56.
• Salesforce reported better-than-expected Q4 earnings of $3.81 EPS and revenue of $11.20 billion, and the board approved a $25 billion buyback program.

Bank of America reiterated an Underperform rating on Salesforce (CRM) on Monday, setting a price target of $160 — based on 9x CY27 EV/FCF — implying around 7.9% downside from the stock’s opening price of $173.77.

Salesforce, Inc., CRM

CRM opened Monday near its 52-week low of $163.52, having dropped roughly 25% over the past six months. The stock’s 50-day moving average sits at $184.17, well above where it is trading now.

BofA pointed to three core issues: muted new customer additions, limited room to upsell existing clients, and what the firm described as an underwhelming AI monetization pathway.

The bank views Salesforce as transitioning from a high-growth platform to a mature cash generator. It models annual growth of around 10% going forward — a structural step down from historical rates.

That said, Salesforce’s fundamentals aren’t falling apart. The company posted Q4 earnings of $3.81 per share, beating estimates of $3.05 by $0.76. Revenue came in at $11.20 billion, slightly above the $11.18 billion consensus and up 12.1% year over year.

What the Rest of Wall Street Thinks

BofA’s view is in the minority. Of 39 analysts covering the stock, 25 have Buy ratings, 11 have Hold ratings, and only two — including BofA — have Sell ratings. One analyst rates it a Strong Buy. The consensus price target is $274.56.

Truist Securities maintained a Buy rating with a $280 target following the company’s TDX developer conference. Barclays kept its Overweight rating with a $252 target. Jefferies also has a Buy rating, though it trimmed its target from $375 to $250.

Salesforce has also taken steps to support the stock. In March, its board approved a $25 billion share repurchase program, allowing the company to buy back up to 14.1% of outstanding stock — a move often seen as a signal from management that it considers the stock undervalued.

Insider Buying and Institutional Activity

Two board directors purchased stock in March. Laura Alber bought 2,571 shares at an average of $194.58, and David Blair Kirk bought 2,570 shares at $194.62. Both were meaningful additions to their existing positions.

Institutional holders own 80.43% of the stock, with several funds growing positions in Q4. Brighton Jones increased its stake by 13.7%, and Revolve Wealth Partners lifted its holding by 12.6%.

Salesforce recently restructured its revenue reporting into two segments — Agentforce Apps and Data 360 — reflecting shifts in its product lineup. The company also expanded its partnership with Google Cloud to deploy AI agents across Slack and Google Workspace.

For FY2027, Salesforce has guided for EPS of $13.11 to $13.19, with Q1 EPS guidance of $3.11 to $3.13. Analysts currently expect full-year EPS of $9.71.

The stock has a P/E ratio of 22.25 and a beta of 1.14, with a gross profit margin of 77.68% and a debt-to-equity ratio of 0.18.

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