ServiceNow (NOW) stock is a hot topic on Tuesday, and some investors might wonder how high the shares could rise. Looking at Wall Street’s coverage of NOW stock, four-star Bernstein analyst Peter Weed holds the Street-high price target for the shares at $236 and maintains a Buy rating. That new target implies a roughly 125% upside potential for NOW stock.
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Why Is Weed So Bullish on ServiceNow Stock?
According to Weed, ServiceNow’s recent Analyst Day reinforced long-term confidence in the company’s growth outlook. The analyst highlighted management’s updated 2030 guidance, which includes plans to increase its Rule of 40 target to above 60 while also improving free cash flow margins.
Bernstein also noted expectations for stock-based compensation as a percentage of revenue to fall below 10% by 2029, which could support stronger profitability over time.
At the same time, Weed acknowledged that some investors remain cautious about the company’s long-term subscription revenue outlook. Bernstein pointed out that ServiceNow’s 2030 subscription revenue target of $30 billion implies growth eventually moderating toward the mid-teens. Even so, the analyst believes ServiceNow’s growing profitability and AI software demand support a bullish long-term outlook for the stock.
ServiceNow Stock Movement Today
ServiceNow stock was up slightly on Tuesday, following a larger rally in early morning trading. The shares have fallen 32.37% year-to-date and are down 49.4% over the past 12 months.
Today’s NOW stock trading activity saw some 27.43 million shares change hands, which was just below its three-month average daily trading volume of about 27.69 million shares.
Is ServiceNow Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for ServiceNow is Strong Buy, based on 35 Buy and four Hold ratings over the past three months. With that comes an average NOW stock price target of $141.68, representing a potential 37.03% upside for the shares.
