Salesforce Stock Downgraded by KeyBanc; Analyst Admits Timing May Be Wrong

KeyBanc analyst downgraded Salesforce (CRM) stock on Wednesday, admitting it might be 'exactly the wrong time' to do so.

Rating Change

Previously, KeyBanc rated CRM as "Overweight." The new rating is "Sector Weight." No new price target was disclosed.

Analyst's Rationale

The analyst cited concerns over artificial intelligence disruption in the software sector, which has weighed on Salesforce's performance. The stock is down 38% year-to-date. However, the analyst acknowledged the downgrade might be poorly timed.

Context

• CRM has fallen 38% in 2026.
• The iShares Expanded Tech-Software Sector ETF is down 11% over the same period.
• Despite the decline, over 70% of analysts covering CRM rate it a Buy, with an average price target of $241.08, implying a 48% upside from current levels.

What to Make of It

While one analyst has turned cautious, the broader analyst community remains bullish on Salesforce. Investors should monitor AI-related developments in the software space before making decisions.