Wolfe Research analyst Alex Zukin last night downgraded Salesforce to Peer Perform from Outperform without a price target. The thesis on the stock has changed with the company’s growth "materially decelerating" following a COVID pull-forward, execution missteps, and acquisition "misfires creating meaningful idiosyncratic headwinds," Zukin tells investors in a research note. With Salesforce’s new bookings this year declining 53%, and a high single digit sales growth estimate for next year with low teens free cash flow growth, the "thesis has changed," contends the analyst. "We clip our horns today as 10 year bulls, and move to the sidelines as CRM enters a new and difficult chapter," writes Zukin.
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