By Tae Kim
Salesforce will generate more revenue from its clients thanks to new artificial-intelligence features in its software for managing relations with customers, according to Wedbush Securities.
On Thursday, analyst Daniel Ives reiterated his Outperform rating on the software company and raised his target for the stock price to $325 from $315. “We believe CRM will be a clear 2nd derivative beneficiary of the AI revolution,” he wrote.
Salesforce shares rose 0.2% to $276.39 in afternoon trading Friday.
The analyst said by adding new capabilities such as AI agents that can handle routine sales and service interactions, he estimates Salesforce could add more than $4 billion of revenue a year starting in 2025. Conversations with clients at the recent Salesforce Dreamforce conference indicate the company’s AI strategy is resonating with customers, he said.
“We are incrementally more bullish on Salesforce given positive customer feedback,” he wrote.
Salesforce shares are up about 6% this year, compared with the 21% rise for the Nasdaq Composite.
Write to Tae Kim at tae.kim@barrons.com