Salesforce (CRM) shares declined in premarket trading following a Morgan Stanley downgrade. The firm lowered its rating to Equal-Weight from Overweight. Analysts slashed the price target to $185 from $287.
Morgan Stanley cited a disconnect between the company’s artificial intelligence initiatives and subscription revenue growth. While the Agentforce AI platform shows promise, underperformance in legacy assets like Commerce and Tableau offsets this momentum.
This marks the second downgrade for Salesforce this month. KeyBanc previously moved the stock to Sector Weight. Both firms expressed concerns regarding the timeline for AI products to contribute meaningfully to growth.