Analysts Stay Constructive on Salesforce (CRM) Despite Sector Weakness

Salesforce Inc. (NYSE:CRM) is among the best machine learning stocks to buy according to analysts. In a February 3 report, The Fly reported that Piper Sandler analyst Billy Fitzsimmons cut the price target on Salesforce from $315 to $280 while maintaining an Outperform rating.

This development followed a coverage reshuffle at Piper Sandler, which also included rating downgrades for three names and lower price targets across the platforms and apps group. The primary reason the analysts highlighted was that “seat-compression and vibe coding narratives could set a ceiling on multiples.”

Piper Sandler appears to have a cautious outlook on the software sector, despite a share price correction over the past 12 months. Instead, it asked its investor to focus on hyperscalers, consumption, and vertical sub-sectors, as the “pessimism” around software is expected to persist.

While Salesforce Inc. (NYSE:CRM) remains among the major players in agentic AI, its share price has come under pressure, along with the broader software sector, due to concerns about AI’s impact on traditional software companies. CRM stock has lost around 27% since the start of 2026 and over 40% over the past year.

Despite that underperformance, analysts remain optimistic about Salesforce Inc. (NYSE:CRM), with more than two-thirds of analysts covering the stock assigning Buy or equivalent ratings. Moreover, the consensus 1-year median price target of $330 implies nearly 71% upside as of February 10.

Salesforce Inc. (NYSE:CRM) is a global enterprise software company that provides customer relationship management (CRM) and cloud-based business applications across sales, service, marketing, commerce, and data analytics. Its Customer 360 platform, powered by data tools and trusted AI, enables organizations to unify customer data and drive personalized engagement.

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.

READ NEXT:  12 Best Software Infrastructure Stocks to Buy According to Hedge Funds and Cathie Wood’s Stock Portfolio: Top 10 Stocks to Buy.

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