Salesforce Inc. (NYSE:CRM) stock fell Thursday after KeyBanc downgraded the cloud software company, citing weak business trends and limited signs of near-term growth.
KeyBanc Sees Limited Signs Of Recovery
KeyBanc analyst Jackson Ader downgraded Salesforce to Sector Weight from Overweight. The analyst said recent financial results and customer feedback do not point to a meaningful recovery.
Ader wrote that, aside from Salesforce’s valuation, there is little evidence to support the stock as an attractive buying opportunity, saying it is “difficult to find evidence” of meaningful future upside.
The analyst also said recent quarterly results have been disappointing. In addition, channel checks remain soft, while feedback from Agentforce customer events suggests the product still needs further development.
As a result, Ader said expectations for faster revenue growth, current remaining performance obligations (cRPO) and bookings appear difficult to support.
Salesforce Expands Defense Business
The downgrade came one day after Salesforce announced a new federal contract.
The company said the U.S. Air Force’s 441st Vehicle Support Chain Operations Squadron has adopted Salesforce Missionforce National Security to manage its $13.5 billion fleet of more than 84,000 vehicles.
Salesforce said the platform will modernize fleet management, streamline logistics and improve operational readiness, expanding the company’s presence in the defense sector.
Technical Picture Remains Weak
Salesforce continues to trade below key long-term technical levels.
The stock sits about 23% below its 200-day simple moving average and roughly 6% below its 50-day moving average. Although it is trading slightly above its 20-day moving average, that short-term strength has not changed the broader downtrend.
The relative strength index stands at 46.3, indicating neutral momentum. The reading suggests the stock is neither overbought nor oversold.
Traders are watching resistance near $187.50, while support is around $146.50, close to the stock’s 52-week low.
Salesforce Price Action
CRM Stock Price Activity: Salesforce shares were down 2.09% at $163.10 at the time of publication on Thursday, according to Benzinga Pro data.
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