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Salesforce Stock Drops Despite Buy Ratings, Analysts See 38% Upside

Salesforce Stock Faces Short-Term Decline Despite Analyst Optimism and AI Growth Potential

  • Salesforce shares fell on Thursday despite positive analyst ratings and future growth expectations.
  • JMP analyst Patrick Walravens reiterated a Buy rating with a $430 price target on Salesforce stock.
  • Recent meetings with Hubbl Technologies highlighted Salesforce’s potential in AI if clients address basic systems issues.
  • Wall Street analysts maintain a positive view, with a Moderate Buy consensus and an average target price suggesting a 38.51% upside.
  • Salesforce’s focus on AI, data management, and fiscal growth draws continued investor interest.

Salesforce shares declined 2% in Thursday trading, continuing a downward trend even as several Wall Street analysts issued positive projections for the stock. Patrick Walravens of Citizens JMP reiterated a Buy rating for the company, maintaining a $430 price target amid a year-to-date share price drop of 27.5%.

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In a recent update, Walravens raised his price forecast after meeting with executives from Hubbl Technologies, a growing Artificial Intelligence company working with Salesforce. The meeting pointed to the enhanced effectiveness of Salesforce’s Agentforce platform when organizational system issues are addressed first.

Walravens also suggested that Salesforce may bring back its “Well Architected Program” during Dreamforce, the company’s annual conference set for October 14–16. The program is designed to help clients create secure, scalable systems optimized for future AI tools like Agentforce.

Analysts point to Salesforce’s recent fiscal performance, highlighting strong revenue and earnings growth. The company’s new partnerships and investments in artificial intelligence and customer data management are seen as positive factors for future expansion.

On Wall Street, Salesforce holds a Moderate Buy consensus based on 30 Buys, eight Holds, and one Sell over the past three months. Analysts from firms such as Truist Securities and Barclays continue to offer optimistic outlooks, while Macquarie remains cautious with a Neutral rating at a $250 price target. The average target price for Salesforce stands at $333.74, suggesting around 39% upside potential from its current price of $240.

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The potential return of the Well Architected Program is viewed as supporting Salesforce’s push toward cleaner, more efficient client systems. This initiative could improve the adoption of AI-powered features within the platform.

Recent collaborations and a focus on integrating new AI capabilities indicate that Salesforce aims to strengthen its competitive position and drive sustained growth in the technology sector.

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