Phillip Securities downgraded Salesforce to Neutral from Buy. The firm lowered its price target to $166 from $270.
Analysts project AI revenue will remain immaterial for several years despite the company's early start in the sector. This outlook suggests limited prospects for a near-term valuation recovery.
The Russell 1000 Growth Benchmark removed Salesforce from its index. This change may trigger selling from index funds that track the benchmark, increasing downward pressure on the share price.
These developments compound existing investor concerns regarding slowing growth.