Salesforce upgraded to Outperform on Agentforce momentum: Northland

Salesforce (NYSE:CRM) received a ratings upgrade to Outperform from Market Perform by Northland Capital Markets due in part to positive customer feedback on Agentforce, the customer relationship management company’s latest AI-powered offering.

Salesforce inched up 1% on Wednesday morning.

The arrival of Agentforce prompts Northland to believe Salesforce can sustain mid-teen revenue growth.

“Northland is upgrading its rating to Outperform, resulting in a corresponding raise in its 12-month price target to $400 from $270 as its GenAI initiatives come to fruition with the announcement of Agentforce, providing greater confidence in sustained mid-teen revenue growth, leading us to extend its DCF forecast period from 8 years to 13 years,” the investment firm noted.

Agentforce is a new Salesforce product that allows customers to set up and deploy autonomous AI agents that can handle complex tasks and generate actionable outputs. It is powered by the Atlas reasoning engine and eliminates the need to write code when building agents, simplifying the process for clients.

Northland extended its discounted cash flow to 13 years from eight years as it finds Salesforce is no longer bound by average revenue per user.

Salesforce has a Buy rating from both Seeking Alpha and Wall Street analysts. However, it has a Hold rating from Seeking Alpha’s Quant system, which regularly beats the market.