Salesforce Stock Drops 2% After Analyst Downgrade

Northland Securities cuts price target, issues 'market perform' rating on CRM shares

Published on Mar. 10, 2026

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Salesforce Inc. (NYSE:CRM) saw its stock price fall 2% during mid-day trading on Tuesday after Northland Securities lowered its price target on the stock from $267.00 to $229.00 and issued a 'market perform' rating. The downgrade comes amid growing investor skepticism about AI-driven SaaS valuations and a 'show-me-the-money' stance from the market following the company's recent cautious guidance.

Why it matters

Salesforce is one of the leading providers of cloud-based customer relationship management (CRM) software, and the analyst downgrade reflects broader concerns about the valuation and growth prospects of high-profile tech stocks. The downgrade could further pressure Salesforce's share price in the near term, even as the company continues to expand its product portfolio and ecosystem.

The details

In its report, Northland Securities cited concerns about Salesforce's growth trajectory and valuation, leading the firm to lower its price target on the stock. The downgrade comes as other research analysts have also recently cut their price targets on Salesforce, with TD Cowen lowering its target to $250.00 and DA Davidson reducing its objective to $200.00.

  • Northland Securities issued the downgrade on March 10, 2026.

The players

Salesforce

An American cloud-based software company that provides customer relationship management (CRM) technology and applications focused on sales, service, marketing, commerce, and analytics.

Northland Securities

An investment banking and asset management firm that provides research coverage on Salesforce.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The Salesforce downgrade highlights the growing caution among investors towards high-flying tech stocks, particularly those in the SaaS space. While Salesforce remains a dominant player in the CRM market, the company will need to demonstrate continued strong financial performance and a clear path to profitability to regain investor confidence and drive its share price higher.