Salesforce (CRM) could post faster growth in H2 as bookings improve, backlog supports subscription revenue, Agentforce gains traction, and newer products add growth, though clearer proof of larger AI deployments and revenue are needed, RBC said in a note Sunday.
The management remains confident that revenue will pick up later in the year, helped by strong Q2 bookings, a larger backlog, and healthier customer spending trends, while Agentforce is gaining traction, with growth coming both from subscriptions and usage, the investment firm said.
RBC said Salesforce still sees a strong competitive edge because it combines customer data, core business software, AI agents, and engagement tools in one platform that would be hard for rivals to match.
The management also remains confident it can defend its AI business, arguing that customers trying to build their own tools often find it harder and less efficient than expected, RBC noted.
RBC kept its sector perform rating and $210 price target for Salesforce, adding that margins may face pressure this year because of investment, but meaningful improvement is expected over time from sales efficiency, lower infrastructure costs, and wider use of AI inside the business.
Price: 185.24, Change: -1.94, Percent Change: -1.04
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