Morgan Stanley Slashes Salesforce Price Target By 35%

2 months ago 27

Danielle Liverance

Wed, July 22, 2026 astatine 5:15 AM CDT 3 min read

Quick Read

Adam Wood chopped Salesforce's terms people 35% from $287 to $185, downgrading CRM to Equal Weight connected timing concerns, not AI skepticism.
Agentforce's $3.4B annualized tally complaint is lone 7% of Salesforce's $46B gross base, excessively tiny yet to offset weakness successful Commerce and Tableau.
CRM trades adjacent 12 times net and is down 35% twelvemonth to date, with buybacks providing a level portion the AI gross inflection plays out.
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Morgan Stanley expert Adam Wood chopped Salesforce (NYSE:CRM) terms people by 35% connected July 21, 2026, Morgan Stanley expert Adam Wood downgradedfrom Overweight to Equal Weight and slashed his Salesforce terms people from $287 to $185, a simplification of astir 35%. CRM banal fell arsenic overmuch arsenic 3.9% intraday and closed astatine $170.06, down astir 2.2% connected a time the NASDAQ Composite rallied astir 1.4%. It was the 2nd ratings downgrade for Salesforce this month.

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A Call About Timing, With the AI Thesis Intact

The cardinal nuance: Wood is bullish connected the starring indicators for Agentforce, Salesforce's agentic AI platform, and its adoption trajectory. His interest is timing and scale.

The disconnect is real. Agentforce momentum exists, but it has not yet shown up wherever it matters astir for the stock: existent remaining show obligations, oregon cRPO, a cardinal guardant indicator of aboriginal subscription revenue. cRPO has stayed weak, signaling company-wide maturation has not yet inflected.

The Scale Problem, successful Numbers

Agentforce generated a $3.4 cardinal annualized gross tally complaint past quarter. Against astir $46 cardinal successful full institution gross projected for the fiscal year, Agentforce is inactive lone astir 7% of the business, not yet ample capable to offset resistance from weaker bequest segments, specifically Commerce and Tableau.

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Wood inactive thinks Salesforce could look arsenic an AI winner. He believes the inflection to company-wide integrated maturation volition instrumentality longer than expected, and his little people reflects compressed valuation multiples crossed the bundle sector. Salesforce continues pushing deeper into agents: successful June 2026 it acquired Fin, a customer-service AI cause institution built connected an outcome-based pricing exemplary and moving connected its ain customized AI model, autarkic of the large AI labs.

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