PomegraSalesforce Stock Jumps 4% After Bank of America Upgrade
Why is Salesforce stock up today?
Salesforce (CRM) stock rose about 4% in premarket trading Monday to about $237 after Bank of America upgraded it to buy, betting AI will deepen reliance on its software.
Key numbers
| BofA price target | $285from $160 (+78%) |
|---|---|
| Premarket move | +4%+3.4% per [3]; +3% per [1] |
| Friday close | $229.13premarket near $237 |
| Year to date | -9%before Monday's gain (per [1]) |
| Q2 FY27 revenue | $11.3B+11% YoY |
| Forward P/E | 14xvs ServiceNow 28x |
What happened
Salesforce (CRM) stock rose about 4% in premarket trading Monday to about $237 after Bank of America upgraded it to buy, betting AI will deepen reliance on its software. Analyst Tal Liani raised his price target (the price he thinks the stock could reach) to $285 from $160. In May, the bank had feared AI could replace Salesforce's products, but it now says big companies are unlikely to swap out the systems running their data and workflows. Reports differ on the size of the jump, from 3% to nearly 5%.
Why it matters
Salesforce sells software that companies use to manage customers and sales, and its shares are still down about 9% this year on fears that AI will replace such software. A big bank reversing a negative call suggests some investors now see AI as a help to these firms, not a threat. The stock trades at about 14 times expected profits, cheaper than ServiceNow at 28 times.
Who this affects
- MarketbullishLow impact
- Software investors get relief; wider market barely moved.
- CompanybullishMedium impact
- Shareholders gain as a prominent bear turns positive.
- CompetitorsbullishLow impact
- ServiceNow also rose about 3% in sympathy.
- IndustrybullishMedium impact
- Eases fears that AI will replace business software.
Salesforce vs ServiceNow, Palantir
How we got here
Bank of America cuts Salesforce to underperform, citing AI replacement fears.
Salesforce reports Q2 revenue of $11.3B, up 11%, and raises full-year outlook.
BofA double-upgrades Salesforce to buy with a $285 target; shares rise premarket.
What to watch
- September US inflation (CPI) report, a key driver for tech stocks this week.2026-10-14
- Salesforce Q3 results; the company guided to $11.42B–$11.5B in revenue.Q4 2026
Educational content only. Not investment advice.
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