Overview
- Salesforce, which Bank of America put at Underperform on Monday, received a $160 target based on 9x 2027 enterprise value to free cash flow and concerns about slow customer adds, limited upsell, and weak AI monetization.
- Shares hovered near a 52-week low around $173.77 and are down about 25% over six months, though they have seen a brief rebound to roughly $179.73.
- Salesforce topped fiscal Q4 forecasts with $3.81 in earnings per share on $11.20 billion in revenue and approved a $25 billion stock buyback.
- The company reports about $800 million in annual recurring revenue from Agentforce and roughly $2.9 billion when combined with Data Cloud, reflecting very fast growth.
- Investors now look to the May 27 earnings call for updates on Agentforce ARR and net-new-customer adds, which could confirm or challenge BofA’s view that AI agents threaten per-seat pricing.