ServiceNow (NOW) shares rose approximately 4.5% in premarket trading on July 1, 2026. Guggenheim analyst John DiFucci upgraded the stock to Buy from Neutral. The firm established a new price target of $125 for the enterprise software company.
Guggenheim identified current stock levels as an attractive entry point following a significant decline in recent months. The firm expects ServiceNow to maintain double-digit growth. Analysts highlighted potential for business expansion within the U.S. Federal Government sector.
While acknowledging risks from AI-driven disruption, Guggenheim stated the company remains well-run. The firm concluded that AI will not be a death knell for the business and currently views the stock as undervalued.