salesforce.com (CRM) PT Lowered to $295 at Citi

Citi analyst Tyler Radke lowered the price target on salesforce.com (NYSE: CRM) to $295.00 (from $320.00) while maintaining a Neutral rating.

The analyst comments "While Q1 results likely met a low-bar, we maintain our Neutral rating on CRM seeing Agentforce remaining a “show-me” story. A modest beat on SMB strength saw offsets with growth continuing to decelerate(cRPO guided to 200bps FX-neutral deceleration in Q2) macro caution on enterprise/key verticals, with profitability improvements deteriorating. While Salesforce is making progress on Agentforce with $100M in ARR (and broader Data Cloud biz at $1B), we’re still not convinced it’s ready for prime-time. From a product perspective the pending INFA acquisition suggests critical data management issues remain. From a GTM perspective the company is accelerating rep hiring with plans to increase capacity by 22% YoY, to drive Agentforce sales (suggesting more push vs. pull). Finally, Agentforce does not appear to be a catalyst yet for re-accelerating growth/profits with further slowing of growth in Q2. Our TP drops to $295 on lower outer-year FCF estimates and updated regression inputs."

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