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Salesforce's Agentforce AI, Data Cloud Strengthen Long-Term Growth Potential: Analyst
CRMsalesforce(CRM) Benzinga·2025-04-21 18:57

Core Viewpoint - Bank of America Securities analyst Brad Sills maintains a Buy rating on Salesforce, Inc with a price target of 350,highlightingthepotentialofAgentforcetocontributetocRPOgrowthinthecomingyears[1]Group1:AgentforcePotential−Agentforceisexpectedtodriveincrementalgrowthof1350, highlighting the potential of Agentforce to contribute to cRPO growth in the coming years [1] Group 1: Agentforce Potential - Agentforce is expected to drive incremental growth of 1% to 2% points in cRPO, with initial contributions anticipated in the second half of fiscal 2026, potentially pushed to the first half of fiscal 2027 due to macroeconomic conditions [1] - The strength of Data Cloud, which achieved 900 million in Annual Recurring Revenue (ARR) in fiscal Q4 2025, up from 400millioninfiscalQ42024,isseenasaleadingindicatorforAgentforce[2]Group2:DeploymentPhasesandROI−TwokeydeploymentphasesforAgentforceincludedatapreparation(4to5months)andagentdevelopment/testing(6to7weeks),withamaterialdeploymentrequiring2or3agentsinproduction[3]−Thedeploymentcyclefromdatapreparationtoagentdeploymentisapproximatelysixtosevenmonths,withcommentarysuggestingthattheROIforAgentforceisstillevolvingbasedonusecases[4]Group3:UseCasesandLimitations−KeyusecasesforServiceCloudincludeshipmenttracking,productinformationretrieval,andrenewalsalesautomation,whichareexpectedtoachieveclosetoa100400 million in fiscal Q4 2024, is seen as a leading indicator for Agentforce [2] Group 2: Deployment Phases and ROI - Two key deployment phases for Agentforce include data preparation (4 to 5 months) and agent development/testing (6 to 7 weeks), with a material deployment requiring 2 or 3 agents in production [3] - The deployment cycle from data preparation to agent deployment is approximately six to seven months, with commentary suggesting that the ROI for Agentforce is still evolving based on use cases [4] Group 3: Use Cases and Limitations - Key use cases for Service Cloud include shipment tracking, product information retrieval, and renewal sales automation, which are expected to achieve close to a 100% case deflection rate [5] - Agentforce currently struggles with more complex use cases, such as direct interaction with prospects and providing investment advice, but there is potential for improvement over time as learning and use cases expand [5] Group 4: Market Performance - CRM shares are currently trading lower by 4.93% at 235.09 [6]