** Shares of enterprise cloud firm Salesforce CRM.N down 1.5% at $243.63 premarket
** D.A. Davidson & Co downgrades stock rating to "underperform" from "neutral" and cuts PT to $200 from $250, representing ~19% downside to stock's last close
** Brokerage says CRM is neglecting its core business in an effort to pursue a premature AI opportunity
** CRM's focus on Agentforce, its autonomous AI application, does make strategic sense based on the transformative potential of AI on the future of application software - brokerage
** But betting the whole company on this effort may be at the expense of the other 98% of the company's business - brokerage
** "We heard from Agentforce customers that they love the early implementations of Agentforce, but also heard that there are significant obstacles to deploying them" - brokerage
** 42 of 54 brokerages rate the stock "buy" or higher, 10 "hold" and 2 "sell" or lower; their median PT is $380 - data compiled by LSEG
** Up to last close, CRM stock down ~26% this year
(Reporting by Jaspreet Singh in Bengaluru)
((Jaspreet.Singh@thomsonreuters.com ; https://twitter.com/i_jass))
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