Truist Securities upgraded ServiceNow (NYSE:NOW) to Buy from Hold and raised its price target to $1,200 from $950, citing the company’s growing strategic role in enterprise IT and strong positioning to capitalize on AI trends.
Analysts see ServiceNow as a standout among enterprise software providers, forecasting that the company will continue to consolidate the IT stack by offering an integrated platform that appeals to large global enterprises. Truist emphasized that macroeconomic uncertainty is creating an opportunity for ServiceNow to gain market share as businesses look to streamline operations and reduce vendor complexity.
The firm views ServiceNow as a “rare compounder” with a scalable platform that supports long-term growth through both upselling and cross-selling into its existing customer base. The analysts also noted that this year’s pullback in the stock presents a favorable entry point for investors.
Truist expects ServiceNow’s AI capabilities and platform architecture to remain key differentiators, driving durable growth across its expanding product portfolio.