Bank of America initiated coverage on ServiceNow (NOW) with a Buy rating on Monday, May 18, 2026. The bank established a price target of $130 for the enterprise software firm.
Analysts suggest the company is well-positioned to benefit from artificial intelligence rather than suffer disruption. Bank of America identified ServiceNow’s integrated workflows as a key advantage for implementing autonomous AI agents. These agents will target improvements across IT, employee, and customer service processes.
The upgrade follows a significant year-to-date decline in the stock price. It coincides with a broader investor rotation back into the software-as-a-service (SaaS) sector. ServiceNow shares gained value in both pre-market and morning trading sessions.