Salesforce (NYSE:) has been upgraded to Outperform by Northland Capital Markets following the release of Agentforce, a platform that incorporates Agentic AI technology.
Stuffsearth.com — According to Northland Capital Markets, Agentforce has not only caught up with Microsoft (NASDAQ:) but potentially leapfrogged it in the field of AI evolution.
The Agentforce platform, officially rolled out on September 12th, enables the deployment of GenAI agents into sales, service, marketing, and commerce workflows.
Powered by the Atlas (NYSE:) reasoning engine and the xLAM series of Large Action Models, Agentforce is said to eliminate the need to write code in the platform to build agents.
Additionally, the platform’s ability to hand over to human agents when faced with complex or ambiguous situations is seen as a significant development in the field of autonomous agents, resulting in high levels of relevance and accuracy.
Northland Capital Markets highlights that Salesforce’s pricing model for Agentforce, set at a consumption basis averaging out to $2 per conversation, is meant to capture a portion of the value of the GenAI technology for end customers.
This is expected to significantly increase the software total addressable market (TAM) by $3.2 trillion from the current $0.8 trillion, a four-fold increase.
“We believe CRM is well positioned to capitalize on the more than 4x in software TAM we expect GenAI will drive,” stated Northland Capital Markets in their note.
They further extended the discounted cash flow (DCF) periods to 13 years from 8 years, expressing confidence that CRM is no longer average revenue per user (ARPU) bound.
As a result, Northland Capital Markets raised the 12-month price target to $400 from $270.
With the potential of Agentic AI and the next evolution to GenAI, Northland Capital Markets is optimistic about CRM’s future prospects. The differentiation of Agentforce based on key data points and its alignment with the evolving landscape of AI technology have positioned CRM as a strong player in the market, potentially surpassing competitors and driving significant growth in the software TAM.
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