KeyBanc Downgrades salesforce.com (CRM) to Sector Weight

KeyBanc analyst Jackson Ader downgraded salesforce.com (NYSE: CRM) from Overweight to Sector Weight.

The analyst comments: “When we first fully expressed our opinions about the "Death of SaaS" narrative, one of the main points of our positive pushback against the doom and gloom was the benefits of incumbency and of the platform. Salesforce remains firmly in that incumbent platform camp and (while maybe not as steadfast as last fall) that remains our opinion.

But even if this is the case and eventually Agentforce does deliver sustained acceleration, the evidence suggests this is further out than we'd expected, if it plays out at all. We attend more Salesforce partner and customer events than any other company in our coverage, and feedback from those customers has been consistent in two ways: 1) customers' data is not in order to do meaningful AI work; and 2) Agentforce, as a product, just isn't there. Partners we speak with are just now beginning to convert Agentforce proof of concepts into deals in the pipeline, and more CIOs in our survey expect to deprioritize Salesforce within their IT budget than the other way around over the coming 12 months. Further, while the Company continues to disclose that net-new AOV is growing above AOV growth in its remarks, we have had a hard time finding that trend in the disclosures of financials.”

For an analyst ratings summary and ratings history on salesforce.com click here. For more ratings news on salesforce.com click here.

Shares of salesforce.com closed at $166.58 yesterday.

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