Salesforce shines in KeyBanc’s 2025 outlook, Amplitude among top picks

KeyBanc Capital Markets revised its 2025 outlook on several enterprise software stocks, highlighting Salesforce Inc (NYSE:CRM ) and Amplitude (NASDAQ:AMPL ) as top picks while turning cautious on ServiceNow (NYSE:NOW ) and Monday .Com (NASDAQ:MNDY ).

Salesforce received an upgrade to “Overweight” from "Sector Weight" rating, with a price target of $440, as KeyBanc analysts expressed optimism about its emerging Agentforce AI platform.

KeyBanc views Agentforce as a key driver of growth, with the potential to pull demand across Salesforce’s ecosystem. Despite recent stock gains, the firm sees room for both valuation and fundamental upside, citing a large discount compared to peers and expected margin expansion over the next two years.

ServiceNow, on the other hand, was downgraded to “Sector Weight” from "Overweight". While the company remains a leader in AI-driven workflow automation, KeyBanc flagged risks to its early leadership as competitors develop their own advanced AI solutions.

Additionally, potential cuts to U.S. government spending—a key revenue source—could weigh on ServiceNow's growth, analysts said.

Amplitude, a smaller player in the sector, was upgraded to “Overweight” with a $15 price target. KeyBanc highlighted signs of a turnaround, including improved annual recurring revenue (ARR) growth and a new CFO focused on cost efficiency. KeyBanc expects Amplitude to deliver significant margin expansion in 2025, positioning it for outperformance among small-cap software stocks.

Meanwhile, Monday.com was downgraded to “Sector Weight,” with KeyBanc expressing caution about its 2025 guidance. Analysts said that while the company has shown resilience, uncertainty over its ability to meet elevated expectations has prompted a more neutral stance.

The brokerage downgraded ZoomInfo Technologies Inc's (NASDAQ:ZI ) rating to “Underweight”, retaining a $10 price target. Analysts said there are better turnaround opportunities elsewhere, citing ongoing challenges in demand and competitive pressures from smaller rivals.

Source: Investing.com