Salesforce NYSE:CRM fell back into focus Wednesday after KeyBanc downgraded the stock to Sector Weight from Overweight, arguing Agentforce is not showing enough momentum to support upside.
KeyBanc analysts led by Jackson Ader said customer checks and CIO survey feedback were weak, with Salesforce standing out for the wrong reasons. The firm removed its price target and cut estimates, saying disclosed numbers do not suggest building traction.
Ader said customers repeatedly cite 2 problems: their data is not ready for meaningful AI work, and Agentforce just isn't there as a product. He added that partners are only beginning to convert proofs of concept into pipeline deals, while more CIOs expect to deprioritize Salesforce spending over the next 12 months.
Salesforce shares are down about 40% year to date, but KeyBanc said the selloff has not created a clear buying opportunity. For investors, the downgrade sharpens the debate over whether Agentforce can turn AI hype into revenue growth.