Investing.com -- Bernstein revealed in a note on Thursday that it has downgraded Salesforce.com to Sector Weight from Outperform, removing its price target and citing weak customer feedback on the company's Agentforce artificial intelligence product.

"Our checks and customer conversations have not been strong, nor has the feedback been on Agentforce," Bernstein analyst Jackson Ader said, adding that disclosed numbers "does not signal building momentum" and that a recent CIO survey showed Salesforce "being a standout for the wrong reasons."

Bernstein continues to view Salesforce as an incumbent platform benefiting from customer entrenchment, a stance it took when pushing back against the "Death of SaaS" narrative.

But the firm said evidence of sustained acceleration from Agentforce "is further out than we'd expected, if it plays out at all."

The bank noted that customer feedback has been consistent on two points, with customer data not organized enough for meaningful AI work, while Agentforce "as a product, just isn't there."

Ader added that more CIOs in the Bernstein survey expect to deprioritize Salesforce within their IT budgets over the next 12 months than expect to increase spending.

Bernstein has also struggled to find evidence in financial disclosures supporting management's commentary that net-new average order value is growing faster than overall AOV growth.

While Salesforce's valuation multiple is low historically, Bernstein said it sits near the median compared with peers and above peers on a growth-adjusted basis.