Bank of America raised its price target on ServiceNow to $150 from $130. The firm maintained a Buy rating on the shares. The analyst cited broad-based software multiple expansion. Improving growth at some infrastructure companies was also a factor. Easing concerns about AI-related disruption further supported the re-rating.
An analysis piece highlighted ServiceNow's partnerships. These partnerships embed AI into its platform. They are creating questions around its traditional per-user software licensing model. This shift occurs as automated agents handle more tasks previously performed by humans.
A separate valuation analysis suggested the company's stock appears significantly undervalued. This assessment is based on its strong second-quarter financial results.