The investment firm says its industry checks "point to a pause in digital-transformation initiatives" with near-term risks as companies rethink their software spending.
The note says spending delays "will likely affect application software generally, vendors whose value propositions are primarily oriented to revenue generation."
While Wedbush still values Salesforce more highly than industry peers, "the stock may lag peers in the near term."
The firm has a $217 price target on the stock, indicating 51% upside potential from the stock's Tuesday closing price just below $144 a share.
Wedbush added Salesforce to its best ideas list in January after it bought human-resources-integration-software provider MuleSoft.
"We've recently talked with cloud sales veterans from major vendors about Salesforce's acquisition of MuleSoft; they see Mule providing a highly complementary sales motion via next-generation integration technology critical to IT in digital transformation," Wedbush said in January's note.
Wedbush sees synergy between the two companies as MuleSoft benefits from Salesforce leads, investments in sales hiring, and inclusion in more strategic customer conversations.
Analysts are clearly taking note of the opportunity provided by the MuleSoft purchase.
Action Alerts PLUS senior analyst Zev Fima told TheStreet that the deal has proved highly synergistic thanks to the platform's ability to unlock data trapped on legacy platforms and make it usable on the Salesforce platform.
This, he said, results in increased efficiencies for customers as they can now gain a more complete understanding of their own clients' needs
Salesforce shares at last check were 3.5% lower at $135.89.