The stock is trading at more two-year lows this morning
Shares of Salesforce Inc (NYSE:CRM) are inching lower this morning, last seen down 0.8% at $129.38, following a bear note from Baird. The analyst downgraded the stock to "neutral," and slashed its price target by $50 to $150. The brokerage noted the upcoming departure of Salesforces' co-CEO, announced earlier this month, and said the software company's macro environment still looks rocky. Baird pointed out that this potent combination could have negative effects on CRM's revenue in the near term.
When news broke that co-CEO Bret Taylor decided to resign, we also pointed out that downbeat seasonality could provide an additional layer of headwinds on the charts. So far, these predictions have been true. CRM gapped below recent support at the $150 level shortly after the news, and hit a series of two-year lows in the aftermath. In fact, the equity is eyeing another two-year bottom today, adding to its more than 48% year-to-date deficit.
More analysts could follow Baird's lead. Of the 32 in coverage, 25 considered the equity a "buy" or better, heading into today. What's more, the 12-month consensus price target of $199.27 is a 53.9% premium to last night's close.