BofA double upgrades Salesforce to Buy on AI strategy

Investing.com -- Bank of America double-upgraded Salesforce to Buy from Underperform on Monday and raised its price target to $285 from $160, about 24% above the current price of $229.13.

Analyst Tal Liani said his previous concern was that AI would disintermediate the software company.

However, conversations with chief information officers and other market participants are said to suggest large enterprises are unlikely to replace platforms that house their business logic, data, workflows and compliance frameworks.

“If anything, AI should deepen dependence on these platforms,” Liani wrote.

“We believe Salesforce offers one of the most comprehensive approaches to enterprise AI adoption,” he added, noting a four-layer architecture.

The data layer establishes governed context, while applications such as Sales Cloud and Service Cloud provide business logic and workflows, the analyst explained. The agentic layer, led by Agentforce, supplies reasoning and orchestration, while Slack and the Anthropic-powered Claudeforce enable natural-language interaction.

Liani argued that so-called vibe coding and in-house development may address isolated use cases but fall short in managing enterprise-scale data, governance and workflow complexity.

AI revenues remain small, and the analyst said the main near-term risk is slower-than-expected adoption. Even so, he pointed to encouraging signs including strong growth in new deal sizes and accelerating performance at Slack.

BofA raised its subscription and support revenue growth forecasts for fiscal 2028 and 2029 to 10.4% and 10.5%.

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