Salesforce was upgraded to Outperform by Northland Capital Markets via Investing.com

Salesforce (NYSE: ) was upgraded to Outperform by Northland Capital Markets following the release of Agentforce, a platform incorporating Agentic AI technology.

Investing.com — According to Northland Capital Markets, Agentforce has not only caught up with Microsoft (NASDAQ: ), but potentially surpassed it in the area of ​​AI evolution.

The Agentforce platform, officially launched on September 12, enables the deployment of GenAI agents in 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 teach 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 points out that Salesforce’s pricing model for Agentforce, set on an average consumption basis of $2 per conversation, is intended to capture some of the value of GenAI technology for end customers.

This is expected to significantly increase the total software addressable market (TAM) by $3.2 trillion from the current $0.8 trillion, a fourfold increase.

“We believe CRM is well-positioned to capitalize more than 4x in TAM software that we expect GenAI to drive,” Northland Capital Markets said in their note.

They further extended discounted cash flow (DCF) periods to 13 years from 8 years, expressing confidence that CRM is no longer tied to average revenue per user (ARPU).

As a result, Northland Capital Markets raised its 12-month price target to $400 from $270.

With the potential of Agentic AI and the next evolution towards GenAI, Northland Capital Markets is optimistic about the future prospects of CRM. Agentforce’s differentiation based on key data points and its alignment with the evolving AI technology landscape have positioned CRM as a strong player in the market, potentially outperforming competitors and driving significant growth in TAM software.