Salesforce, Amplitude upgraded as AI agents set standard: KeyBanc

Salesforce (NYSE:CRM) was upgraded to Overweight from Sector Weight as its artificial intelligence offering Agentforce sets the new standard in enterprise management software, according to KeyBanc.

“The energy around Agentforce is pervading our conversations with Salesforce customers, partners and investors,” said KeyBanc analysts, led by Jackson Ader, in an in-depth investor note. “We are fans of this agentic wave in artificial intelligence compared to its copilot predecessor and believe there is real potential for Agentforce to pull activity across Salesforce Clouds into its demand orbit.”

KeyBanc notes that Agentforce remains in a very early phase as an enterprise offering. This means news and anecdotes on its performance can drive up stock before it creates significant revenue, which is not expected until late 2025.

KeyBanc set a $440 price target on the stock.

Amplitude (NASDAQ:AMPL) also received an upgrade to Overweight from Sector Weight and a $15 price target. Amplitude shares were up during early trading on Friday.

“Amplitude fits into the revenue acceleration plus margin expansion mold for 2025, but we feel it has not gotten the credit for it, despite having already seen the turn,” Ader said. “ARR and dollar-based net-retention both improved in the 3Q over the prior quarter with ARR growth topping 9%. However, consensus revenue growth for 2025 calls for a slowdown in revenue to 7.6%, and we believe there is a mismatch to be exploited.”

However, KeyBanc downgraded several other enterprise software names.

ServiceNow (NYSE:NOW) was downgraded to Sector Weight from Overweight. KeyBanc finds the rise of AI agents from competitors combined with potential cuts to government spending creates risks for the stock.

Monday.com (NASDAQ:MNDY) was also downgraded to Sector Weight from Overweight.

“Being positive Monday has been a part of our lives for many years and, just to say it explicitly, we still like the Company and the asset,” Ader noted. “We’re just too nervous about the 2025 guidance.”

Meanwhile, ZoomInfo (NASDAQ:ZI) was downgraded to Underweight from Sector Weight and received a $10 price target by KeyBanc.

The investment firm pointed out that ZoomInfo is guiding consensus to revenue declines during the fourth quarter of 2024 and into 2025.

“Upside may come from serious reduction of expectations, but given that even just a couple points of revenue growth would be material upside to estimates, multiple expansion will have to do most of the work for the stock, and we believe that expansion will happen elsewhere,” Ader added.