Monness Maintains Neutral Stance on Salesforce (CRM) Stock

Salesforce, Inc. (NYSE:CRM) is one of the Top Technology Stocks to Buy According to Hedge Funds. On August 25, Monness analyst Brian White maintained a “Neutral” stance on the company’s stock, providing a “Hold” rating. The analyst’s rating is backed by a combination of factors, which include Salesforce, Inc. (NYSE:CRM)’s strategic positioning in the broader AI sector and efforts to capitalize on the digital labor movement via initiatives such as Agentforce.

PepsiCo has announced its plans to deploy Agentforce – the digital labor platform from Salesforce, Inc. (NYSE:CRM) for bringing trusted, autonomous AI agents into the workflow. While Salesforce, Inc. (NYSE:CRM) continues to make significant strides with innovations and acquisitions, its growth remains lackluster in the competitive and challenging macroeconomic environment, added the firm’s analyst. However, the company remains optimistic about its momentum as it capitalizes on the opportunities presented by agentic AI. Overall, Salesforce, Inc. (NYSE:CRM)’s performance demonstrates robust execution, thanks to the continued focus on innovation and operational excellence.

Oakmark Funds, advised by Harris Associates, released its Q2 2025 investor letter. Here is what the fund said:

“Salesforce, Inc. (NYSE:CRM) is a leading technology company that offers a collection of software products aimed at providing businesses with a full front office productivity suite. We believe Salesforce is a wonderful business going through a transformation into a profitable, shareholder-focused enterprise. Since management announced their renewed focus on operating discipline a couple years ago, Salesforce’s margins have increased substantially. In our view, there is further room to improve as the company leverages its unique position to help businesses deploy AI and continues to restructure its sales organization. Since exiting our position in Salesforce in December, the stock price has declined by over 30% despite continuing to report fundamental results that are in line with our expectations. We were pleased to buy the stock, but we first established our position using a put writing strategy to lower our entry price. We believed the puts were overvalued as they implied that Salesforce was among the most volatile large companies, which was completely at odds with our assessment of its business value.”

While we acknowledge the potential of CRM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.