Salesforce Gets ‘Overweight’ Rating Amid AI Wave: A Look into Morgan Stanley’s Analysis

Keith Weiss, a seasoned analyst at Morgan Stanley, has revised his rating for Salesforce Inc., upgrading it from 'equal-weight' to 'overweight.' This decision comes on the heels of Salesforce's impressive 96% surge this year, and a promising potential for growth as the artificial intelligence wave approaches. Despite the substantial growth already witnessed, Weiss has set a new price target of $350 for Salesforce, implying a further 34% gain over the next year. This projection would surpass the company's all-time high from 2021.

Factors Driving Salesforce's Projected Growth

Weiss outlines several factors that he believes will contribute to Salesforce's growth. First, price increases for the company's products could provide a significant boost to revenue. Second, the practice of product bundling could attract new customers and also increase spending by existing customers. Finally, and most significantly, the adoption of Salesforce's data cloud suite could be a game-changer for the company. As businesses gear up for a broader adoption of AI technology, Salesforce's data cloud suite is strategically positioned to benefit.

Comparative Analysis and Market Insights

While Weiss's outlook for Salesforce is highly optimistic compared to the consensus prediction of a 7.7% upside, other analysts have also recognized the company's potential to benefit from advancements in AI. Interestingly, the report also mentions other tech and investment insights, noting perspectives on FAANG stocks and the impact of consumer price index (CPI) data on equity markets. Navkinder Sanghera, head of UK retail & consumer goods at Salesforce, discusses the potential impact of AI on the retail sector. He emphasizes the importance of addressing concerns of bias, misinformation, and data privacy, as well as the need for retailers to invest in re-skilling their workforce and ethical AI development.

Potential Candidates to Join the Trillion Dollar Market Cap Club

In the same discourse, Salesforce, Adobe, and ServiceNow are identified as potential candidates to join the trillion-dollar market cap club in the next decade. Salesforce, a dominant force in CRM software, has a wide moat and a focus on profitability. Adobe, a leading provider of creative software, is also experiencing impressive growth and profitability, but faces uncertainty with the potential impact of AI on its products. ServiceNow provides a popular IT workflow platform with strong revenue growth, high customer retention rate, and potential for market cap growth in the future.

The use of AI-powered chatbots, personalized shopping experiences, and data-driven insights to enhance customer engagement and loyalty have transformed customer service. Artificial intelligence is playing a significant role in marketing, with 90% of business leaders planning to use generative AI solutions within two years. Brands like Whole Foods, ClickUp, Sephora, Coca Cola, Nike, Starbucks, Airbnb, Lowe's, Netflix, Amazon, Alibaba, eBay, Walmart, and Magnolia Market are utilizing AI for personalized customer experiences, efficient supply chain management, enhanced customer service, and targeted advertising campaigns.

The post Salesforce Gets ‘Overweight’ Rating Amid AI Wave: A Look into Morgan Stanley’s Analysis appeared first on BNN Breaking.