J.P. Morgan analyst Samik Chatterjee has placed an overweight rating on Salesforce and set a $250 price target, implying 29% upside through December 2027. Shares gained more than 4% on Thursday as Chatterjee argued that fears over AI disruption to Salesforce's business are overblown.
Salesforce shares gained more than 4% on Thursday after J.P. Morgan analyst Samik Chatterjee set an overweight rating on the stock, following a period in which the bank didn't rate it. Chatterjee also established a $250 price target. That implies room for the stock to run 29% higher through December 2027.
Investors have been jittery over whether Salesforce can withstand artificial-intelligence disruption. But Chatterjee expects growth in the company's core business to pick up during the coming months, and while he acknowledges that parts of the business are subject to AI risk, he thinks that threat is limited to a small portion of the company.
Where Chatterjee sees the upside
Salesforce has its own opportunities to cash in on AI, including through its Headless 360 software, which offers tools for AI agents and lets businesses make updates more easily. Chatterjee is intrigued by its financial potential over the long term.
Another asset is the company's Data 360 platform, which helps companies unleash the value of their data and use it to build AI. Data 360 could be a major driver of accelerating revenue growth for Salesforce, according to Chatterjee.
Some AI initiatives may take longer to show results. Chatterjee believes the company's Agentforce platform, which allows clients to build autonomous agents, is still essential to the company's growth story. The platform was introduced in 2025, and Chatterjee says it's still "early days" for the company's newer products.
According to MarketWatch, Chatterjee wrote that Agentforce "is crucial for the company's long-term position".
The path to the Rule of 50
Chatterjee believes Salesforce is capable of achieving the Rule of 50 — meaning annual revenue growth and profit margin would add up to 50% or more — by fiscal 2030. He said share prices seem to bake in that the company will move backwards rather than progress toward that benchmark.
Investors may get more indications of Salesforce's growth story on Aug. 26, when the company is due to report earnings.
Source: MarketWatch
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