Salesforce stock CRM gained more than 2% on Monday after Bank of America upgraded the shares to Buy from Underperform, citing the potential for artificial intelligence to strengthen demand for enterprise software platforms.
The company also announced an agreement to acquire Loops, an AI-powered analytics startup, as it expands its strategy for AI-driven business intelligence.
Bank of America raised its price target for Salesforce to $285 from $160, arguing that large enterprises are unlikely to replace software platforms that manage their data, workflows, business processes, and compliance requirements as they adopt AI.
The upgrade comes as Salesforce shares have declined about 14% in 2026, amid investor concerns that wider AI adoption could reduce demand for traditional software tools.
BofA sees AI strengthening Salesforce’s platform
Bank of America analyst Tal Liani said large enterprises were unlikely to abandon the platforms that support their core business operations. Instead, he expects AI to increase companies’ reliance on existing software infrastructure.
“If anything, AI should deepen dependence on these platforms,” Liani said.
The analyst said Salesforce was positioned to benefit across the AI value chain, potentially reducing the risk that foundation models would displace its software.
Greater platform usage, premium upgrades and stronger revenue growth could support the company’s long-term performance, according to the brokerage.
Bank of America also cited improving business momentum, including growth in net new annualized order value and stronger performance at Slack.
The bank raised its subscription and support revenue growth forecasts to 10.4% for fiscal 2028 and 10.5% for fiscal 2029, from previous estimates of 9.9% and 10.2%, respectively.
Its revised $285 price target values Salesforce at 16 times its expected free cash flow for 2027, compared with nine times previously, said a Seeking Alpha report.
However, Liani identified slower-than-expected AI adoption as a near-term risk, noting that AI-related revenue remains small relative to Salesforce’s overall business.
Salesforce has been expanding its enterprise AI strategy, including its Agentforce platform of autonomous AI-powered agents.
Bank of America’s upgrade reflects expectations that these initiatives could help the company attract more customers and support a return to faster growth.
The brokerage’s positive view is broadly consistent with analyst sentiment.
According to LSEG data, 36 of the 51 analysts covering Salesforce had Buy or Strong Buy ratings.
Salesforce to acquire AI analytics startup Loops
Separately, Salesforce announced that it had signed a definitive agreement to acquire Loops, an AI-powered analytics platform designed to monitor business performance, explain changes in key metrics, and identify opportunities for improvement using machine learning.
The acquisition is intended to advance Salesforce’s strategy for agentic analytics, which uses AI agents to help customers understand the factors driving business results and determine what actions to take.
Salesforce plans to integrate Loops’ technology into Tableau, its data visualisation and analytics platform.
Mark Recher, executive vice president and general manager of Tableau, said the acquisition would build on the platform’s existing focus on helping users interpret data and make decisions.
“Loops accelerates this mission, using powerful agentic AI to uncover the drivers behind business performance and surface where teams and agents can take action in real time,” Recher said.
The transaction is expected to close in early November next year.
AI adoption remains a key test for Salesforce
The BofA upgrade highlights an important aspect of Salesforce’s AI strategy: increasing the value of its existing software platforms and expanding the use of AI agents to analyse business data.
The brokerage expects improving order growth and Slack performance to support stronger revenue expansion over the coming quarters.
Its forecasts point to a gradual acceleration in subscription and support revenue growth through fiscal 2029.
However, the financial contribution from AI remains an important uncertainty. If customers adopt Salesforce’s AI tools more slowly than expected, the anticipated boost to revenue growth could take longer to materialise.
Investors weighing whether the AI-driven rebound has further to run can follow analyst ratings and track the stock’s progress through investment apps.
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