Bank of America double-upgraded Salesforce from sell to buy on Monday, raising its price target to $285 from $160 and arguing that AI poses a lesser threat — and a greater opportunity — for the enterprise software giant than previously assumed.
Bank of America reversed its bearish stance on Salesforce on Monday, issuing a double upgrade from sell to buy and lifting its price target to $285 a share — up sharply from its prior target of $160 — as analysts concluded that AI-driven threats to the enterprise software company had been overstated.
Salesforce shares rose approximately 1.5% in Monday's session following the upgrade, though the stock remains down about 12% year to date. Shares have climbed more than 50% from their 52-week closing low of roughly $150 in late June, a rebound that accelerated following a stronger-than-expected earnings report in late August.
At the core of Bank of America's reversal is a reassessment of how deeply embedded Salesforce's software is within large enterprise operations. Analysts cited conversations with chief information officers as a key factor in shifting their view.
"Conversations with CIOs and other market participants suggest that large enterprises (more than SMBs) are unlikely to replace platforms that house their business logic, data, workflows and compliance frameworks," analysts wrote. "If anything, AI should deepen dependence on these platforms."
Bank of America also expressed confidence in Salesforce's approach to monetizing AI adoption across its customer base. "We believe Salesforce offers one of the most comprehensive approaches to enterprise AI adoption," the firm wrote.
A central element of that strategy is Salesforce's partnership with AI company Anthropic, announced in late August and branded internally as "Claudeforce." The deal is designed to allow enterprise users to access Salesforce data through Anthropic's Claude chatbot interface, rather than requiring direct logins to Salesforce applications — an acknowledgment that workplace AI tools are increasingly becoming the primary interface for white-collar workers.
The Anthropic partnership coincided with Salesforce reporting better-than-expected fiscal 2027 second-quarter results, along with current-quarter guidance that the company said reflected its commitment to reaccelerating growth.
Salesforce followed that momentum with its annual Dreamforce conference in September, where the company provided additional detail on how it intends to remain relevant as traditional software application interfaces yield ground to AI-driven workflows.
For much of 2026, Salesforce's stock was under pressure from concerns that AI would erode the seat-based subscription model that underpins most software-as-a-service businesses. Analysts and investors also worried that AI tools could empower corporate clients to build proprietary in-house applications, potentially displacing Salesforce products. That narrative — widely referred to as the "SaaSpocalypse" — drove the stock to its June lows.
Bank of America acknowledged the error directly. "Salesforce was not falling apart, and it was the wrong call," the firm indicated in its revised assessment, signaling a broader shift in how Wall Street is evaluating established enterprise software vendors in the AI era.
Despite Monday's upgrade, Salesforce has not fully won over analysts. Approximately one-third of analysts covering the stock currently maintain hold-equivalent ratings, suggesting the company still faces skepticism about its long-term monetization strategy as AI reshapes how enterprises consume software.
The upgrade signals that a segment of Wall Street is now viewing entrenched enterprise software platforms as potential beneficiaries of AI adoption rather than casualties of it — a reassessment that could influence how investors price other large SaaS vendors facing similar questions about their durability.
Sara Montes de Oca is the Editor in Chief of TechEchelon. Previously a correspondent and producer in Washington, D.C., covering business, finance, and politics.
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