Piper Sandler lowered its price targets for Microsoft (MSFT) and Salesforce.com (CRM) on April 14, citing a cautious outlook on the enterprise software sector.

The firm reduced Microsoft's price target from $600 to $500. Analysts indicated the adjustment reflects a broader reassessment of valuation multiples amid shifting market dynamics.

Salesforce.com's target was cut from $250 to $215. Piper Sandler maintained its "overweight" rating on the stock. The bank noted that leading AI model providers appear to be competing more directly with established software companies for enterprise IT budgets.

The sector is expected to face a "difficult" year, with changing growth prospects driving the recalibration. Microsoft and Salesforce.com are among the largest enterprise software suppliers, and the lowered targets suggest potential headwinds as AI competitors gain market traction. Analysts added that these adjustments do not reflect changes in the fundamental business quality of either company.