Morgan Stanley downgrades Salesforce, cuts target to $185

According to CNBC, Morgan Stanley downgraded Salesforce to equal-weight from overweight and cut its price target to $185 from $287, implying 6% upside from Monday's close. Analyst Adam Wood said Salesforce is reshaping itself for the agentic era, but strong Agentforce metrics have not yet sparked an inflection in organic growth and legacy products continue to weigh on results. He also said shares may stay range-bound without a clear growth pickup. Salesforce fell nearly 4% in premarket trading after the downgrade and is down 34% year to date. The company laid off 4,000 workers last year as it replaced some support engineers with its AI-powered customer service bots called Agentforce, and it bought AI customer service platform Fin for more than $3 billion last month. Morgan Stanley's view contrasts with Wall Street consensus, with LSEG data showing 40 of 53 analysts rate the stock a strong buy or buy.