Morgan Stanley Downgrades Salesforce Amid Ongoing Growth Concerns
Salesforce stock took another hit on Tuesday after Morgan Stanley downgraded it to 'equal weight' from 'overweight', slashing its price target by more than $100. The firm believes Salesforce is 'actively disrupting itself' to position for the agentic era, but strong Agentforce performance has yet to drive an inflection in the company's organic growth amid ongoing legacy portfolio drags.
Morgan Stanley set a new price target of $187, implying an upside potential of just over 6% as of the stock's last closing price on Monday. The firm views the risk/reward scenario as balanced at current share price levels.
Despite the downgrade, Wall Street remains largely bullish on Salesforce, with 39 out of 53 analysts covering the stock rating it a 'buy' or higher.