Analysts Are Downgrading These 5 Stocks

1. Salesforce, Inc. (NYSE:CRM)

Number of Hedge Fund Holders: 117

Baird cut its ratings for Salesforce, Inc. (NYSE:CRM) from “Outperform” to “Neutral” on Thursday, December 8. The research firm also reduced its price target for the cloud-based software company from $200 per share to $150 per share.

Analyst Rob Oliver expressed concerns over macro challenges and the recent departure of senior leadership. He added that macro hurdles could impact the growth of Salesforce, Inc. (NYSE:CRM) in the near term.

Separately,  investment advisor Aristotle Atlantic Partners, LLC also talked about Salesforce, Inc. (NYSE:CRM) in its third-quarter 2022 investor letter, stating:

“We sold Salesforce, Inc. (NYSE:CRM) to reduce our weighting in the Information Technology sector. Salesforce held their investor day, and the company reiterated their organic Fiscal Year 2026 revenue target of $50 billion. This target remains more back-end loaded based on current slowing macroeconomic conditions and requires new annual contract growth well ahead of what the company has been averaging for the past few years. We are skeptical that the company will be able to achieve this revenue target organically and see Merger & Acquisitions (M&A) being key to achieving the growth. While we believe Salesforce has shown good success in growing its non-CRM clouds, we do see more competitive pressures emerging for the Marketing and Customer Service Clouds, specifically on the pricing side during a global economic slowdown.”

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