Salesforce is still an undervalued stock, this analyst says

It had a great run in the second half of 2024, but Wedbush analyst Dan Ives thinks there is still money to be made in 2025 on Salesforce (Salesforce Stock Quote, Chart, News, Analysts, Financials NYSE:CRM).

As reported by the Globe and Mail, the analyst, in a research update to clients December 27, reiterated his “Outperform” rating and price target of $425.00 on CRM.

Ives believes CRM is set to become an AI leader in the software space.

“With the AI Revolution entering the software phase heading into 2025, CRM is well-positioned to capture its fair share of market expansion as the AI monetization phase will catalyze CRM’s growth over the next 12 to 18 months with a $7-trillion-dollar digital labor market opportunity on the horizon for CRM,” he wrote. “With the goal of accelerating the path to building next-gen AI agents grounded in customer data to lower costs and increase automation for businesses, Agentforce 2.0 is looking to enable AI to perform advanced actions for humans with elevated trust layers built in for agents paving the way for a new era of digital labor. We believe CRM is a clear 2nd derivative beneficiary of the AI Revolution that could add $80 per share to the CRM story as this monetization story takes shape over the next 12 to 18 months with Benioff & Co. leading the charge and this new era of AI growth.”