Guggenheim Sees Buying Opportunity in Downed CRM Stock

Salesforce's stock plummeted by over 25% in June, but one analyst believes this downturn has created a buying opportunity. Guggenheim upgraded Salesforce to 'Buy' from 'Neutral' with a price target of $228, implying an upside potential of nearly 46% from Tuesday's closing price.

The brokerage firm sees AI as a major risk and views Salesforce as likely to be negatively impacted by Agentic AI. However, it argues that the 'Armageddon' situation priced into the stock does not align with reality.

Philip Securities downgraded Salesforce to 'Neutral' from 'Buy' earlier this week, citing slowed growth despite its head start in AI. The firm also noted that Salesforce's AI adoption has not contributed meaningfully to revenue and may remain immaterial for several years.