Bank of America analyst Tal Liani issued an Underperform rating for Salesforce and identified ServiceNow as a primary beneficiary of artificial intelligence [1, 3].

This shift in outlook reflects a growing divide among enterprise software companies as investors scrutinize which firms can actually monetize AI integration. The divergence in ratings suggests that simply adopting AI is no longer enough to sustain high valuations in the current market.

Speaking on CNBC's "Closing Bell Overtime" on Monday, Liani said the landscape of AI winners and losers is evolving [1, 2]. He assigned Salesforce an Underperform rating and set a price target of $160 [1].

While the outlook for Salesforce shifted downward, Liani reinstated coverage of ServiceNow [3]. He said the company is a beneficiary of the AI trend, contrasting its position with that of other software providers [3].

The analysis comes as the financial sector attempts to determine which companies possess the infrastructure to turn generative AI into consistent revenue streams. Liani's assessment highlights the risk for established CRM providers if their AI narratives fail to produce tangible growth [1].

BofA provided these recommendations to inform investors on how to navigate the volatility of the AI sector [1, 3]. The distinction between the two companies underscores a broader trend where specific operational efficiencies are prioritized over general AI capabilities.

“Bank of America issued an Underperform rating for Salesforce with a $160 price target.”

The contrast between the ratings for Salesforce and ServiceNow indicates a transition from 'AI hype' to 'AI execution.' By downgrading a major player like Salesforce while favoring ServiceNow, Bank of America is signaling that the market is now rewarding companies that can demonstrate specific, scalable AI utilities over those relying on broad platform promises.